You’re paying for wealthy’s low taxes
Published 1:30 am Wednesday, July 3, 2024
Recently, a letter to the editor bemoaned all the “new” taxes homeowners are being hit with, as to why school levies do not pass. Aside from guessing which side of the “no new taxes” political spectrum the author resides on, allow me to offer my perspective. Specific facts may be fuzzy, but the gist should be correct.
First off, back in 1981, just after we purchased our first home, interest rates hit their highest point at 18.5 percent. Appreciating how expensive housing is, we still have to laugh when people complain about the high 7 percent interest rates of today. So, yeah, things have changed in 35 to 40 years. I’m sure your income grew some too.
On the national level, our taxes go to the federal government and that money is divided up and provided to states to pay for the Medicare, Social Security, military budgets, infrastructure, etc., known as the redistribution of wealth. When the federal government lowers the tax rate, i.e. Trump’s tax cut for the rich, it loses income that it was counting on. (Imagine your boss reducing your pay. Spending doesn’t stop. The bills still need to be paid.)
So, either they borrow and the tab goes on the national debt (credit card), or they slash programs and push those programs and expenses back down to the states. Again, we can go back to the Truman-Eisenhower eras, when tax rates were about 90 percent for the upper income earners. Today, they pay slightly more percentage-wise than you or I pay, and in the case of corporations, sometimes much less. That’s a big disparity from the days of grand highway projects, or space races. Now, we’re left with crumbling bridges and fighting over the crumbs.
In essence, you are paying for the rich’s tax break. (Think about that when you vote.)
But alas, Washington state only has homeowner’s taxes. Consider yourself lucky. Ohio, where I am from, has federal, state, local and R.I.T.A. (regional income tax agency).
I like to consider taxes as being my tithes. Rather than we all pay for our own personal schools, we pool our resources and get one for all.
Nancy Cooper
Stanwood
