Tuesday is the deadline for filing federal income tax returns for most people. Traditionally the filing date is April 15 or the first business day afterward. This year the date fell on Saturday and Monday is Emancipation Day, a federal holiday celebrating the statutory end of slavery in 1862.
This year is a return to normalcy for many people who received COVID-related payments and assistance, meaning many of them will pay more or see smaller reimbursement payments. Early data from the Internal Revenue Service indicated that the average refund amount was 10.8% lower than it was in 2022.
Such a difference could be significant depending on one’s tax burden, and likely will inspire or renew complaints about how much of the work we do seems wasted because the fruits of our labors are lost to the taxman.
Of course, income taxes are only part of the burden we have to bear; we also pay state and local sales and property taxes, not to mention special payroll taxes for Social Security, unemployment compensation and other assessments such as special fees and road tolls. It all adds up to a hefty drain on taxpayers’ pocketbooks.
What’s more, although state officials frequently tout Texas as a tax-friendly state, we’re actually in the middle of the pack with regard to states’ tax total tax burden. We don’t have a state income tax, but any revenue shortfall is more than made up through higher property taxes. In fact, according to the Institute of Taxation and Economic Policy, when sales and property taxes are factored in, Texans pay more in taxes than residents of California, who pay state income taxes but lower property taxes.
Ostensibly, it all goes to keep our government running. Unfortunately, it’s no secret that government, at all levels, wastes much of the money it takes from taxpayers.
Government Accountability Office audit reports of various government agencies and departments often report billions of dollars are lost through unreasonably inflated prices, duplication and unnecessary expenses. Worse, billions more can’t be accounted for — the money simply disappears.
While much of the waste apparently is caused by inefficiency and ineptitude, some of it is by design. In the Rio GrandeValley, for example, several local entities reportedly enjoy friendly relationships with contractors that enable them to low-ball bids in order to secure contracts, with full knowledge that they can rake in millions after the fact through change orders, adjustments and off-contract purchases.
There’s little incentive to be frugal when officials aren’t spending their own money and it’s so easy to raise tax rates or property valuations in order to bring in more revenue.
It’s been said taxation is part of the cost of freedom. Others, however, make a strong case when they say that losing the value of one’s work, even to the government through taxation, is not freedom but something more akin to slavery.
Those who believe that their tax burden is unreasonable should remember that they have the power to do something about it, by removing wasteful officials and electing those who pledge to be better stewards of their tax dollars — and holding them to that promise
