Political & Elections

Without the tax code to dick with, nobody but the single-issue voters would care congress was even in session.

The bright side to the SS tax holiday might be that they're bankrupting it even quicker. When it's crippled to the point of being clinically dead, maybe they'll get around to an actual reformation of it.

Perhaps this is a start:

Dear Taxpayer,

Americans are facing tough times. Millions are still out of work. Wages remain stagnant, while

health care costs, tuition, and other household cost continue to rise. Many homeowners owe

more for their houses than they are worth.

With families across the country struggling to make ends meet during these economically trying

times, many are left with few options so they are turning to the government – some very

reluctantly – for assistance. The government safety net has been cast far and wide, with almost

half of all American households now receiving some form of government assistance.

1

But most

taxpayers will be asking why when they learn who is receiving what.

From tax write-offs for gambling losses, vacation homes, and luxury yachts to subsidies for their

ranches and estates, the government is subsidizing the lifestyles of the rich and famous. Multimillionaires

are even receiving government checks for not working. This welfare for the well-off

– costing billions of dollars a year – is being paid for with the taxes of the less fortunate, many

who are working two jobs just to make ends meet, and IOUs to be paid off by future

generations.

This is not an accidental loophole in the law. To the contrary, this reverse Robin Hood style of

wealth redistribution is an intentional effort to get all Americans bought into a system where

everyone appears to benefit.

“Everybody can have a free lunch,” explains Howard Leikert, supervisor of school nutrition

programs for the Michigan Department of Education,

where a new federal program is

providing all students, regardless of their families’ incomes, free school meals in select areas.

But not everyone

have a free lunch. Ultimately someone must pay for each of the lunches

being given away. Furthermore, not everyone

a free lunch. The real result of serving

everyone a piece of the pie is less is leftover for those truly in need.

Some economists argue “if we think that the rich are getting too much of the economic pie, then

they should be taxed more.”

This is no different than taking a dollar from one pocket and

putting it into another in the same pair of pants.

We should never demonize those who are successful. Nor should we pamper them with

unnecessary welfare to create an appearance everyone is benefiting from federal programs.

Even in these difficult times, the United States remains a land of opportunity and not everyone is

in need of government hand outs. The income of the wealthiest one percent of Americans has

1

, Bloomberg, October 28, 2011;

http://www.bloomberg.com/news/2011-10-28/americans-hooked-on-government-as-record-number-getbenefits.

html

.

2

, The Muskegon Chronicle, September

30, 2011;

http://www.mlive.com/news/muskegon/index.ssf/2011/09/all_muskegon_heights_students.html

.

3

, University Of Chicago Press, 2000.

2

risen dramatically over the last decade. Yet, the federal government lavishes these millionaires

with billions of dollars in giveaways and tax breaks.

4

The government’s social safety net, which has long existed to catch those who are down and

help them get back up, is now being used as a hammock by some millionaires, some who are

paying less taxes than average middle class families. Comprehensive information on the full

range of government benefits enjoyed by millionaires has never been collected previously.

This

report provides the first such compilation. What it reveals is sheer Washington stupidity with

government policies pampering the wealthy costing taxpayers billions of dollars every year.

These billions of dollars for millionaires include $74 million of unemployment checks,

$316

million in farm subsidies

, $89 million for preservation of ranches and estates, $9 billion of

retirement checks, $75.6 million in residential energy tax credits, and $7.5 million to compensate

for damages caused by emergencies to property that should have been insured. All and all, over

$9.5 billion

in government benefits have been paid to millionaires since 2003. Millionaires also

borrowed

in government backed education loans to attend college.

On average, each year, this report found that millionaires enjoy benefits from tax giveaways and

federal grant programs totaling

. As a result, almost 1,500 millionaires paid no federal

income tax in 2009.

6

Fleecing the taxpayer while contributing nothing is not the American way.

Americans are generous and do not want to see their fellow citizens go without basic

necessities. Likewise, we expect everyone to contribute and to demonstrate personal

responsibility. Government policies intended to mainstream wealth redistribution are

undermining these principles. The tragic irony is the wealth in these cases is trickling up rather

than down the economic ladder. The cost of this largess will thus be shared by those struggling

today and the next generation who will inherit $15 trillion of debt that threatens the future of

the American Dream. These consequences are the results of shortsighted spending and tax

policies like those outlined in this report that should be eliminated.

7

Sincerely,

Tom A. Coburn, M.D.

U.S. Senator

4

For purposes of this report, unless otherwise noted, “millionaire” is defined as an individual reporting an annual

adjusted gross income (“AGI”) of $1 million or more. AGI is generally defined as an individual’s taxable income after

any allowance for personal exemptions or itemized deductions.

5

Section XII.

6

, August 8, 2011,

http://latimesblogs.latimes.com/money_co/2011/08/nearly-1500-millionaires-paid-no-taxes-in-2009-says-irs.htm

.

7

While this report focuses on benefits paid to individuals with an AGI of $1 million, for some of the programs

discussed, the appropriate AGI level to reduce or eliminate the benefit may be lower. This is a policy question that

Congress should address.