William Thien

Middle Class America, America’s Tax Surrogates

Posted on: January 18, 2014

In an observation on eliminating tax deductions I brought up the subject of “tax surrogacy” in The United States. My position is that childless taxpayers are merely “tax surrogates” for a parasitic tax code that allows taxpayers with children to obtain a child tax credit or deduction for each child they are raising and the funds for such deductions are available because childless taxpayers are not eligible. In other words, childless taxpayers are paying to raise the children of those with children because the childless taxpayer does not receive the deduction. I elaborate further on that perspective in America’s Unfair Tax Code and The Brown Headed Cowbird.

But the more I consider the concept of “tax surrogacy” the more I see it applies to a wider breadth of the country’s population. Not only are childless taxpayers tax surrogates for those with children, the middle class taxpayer is a tax surrogate for both the poor and the very wealthy. That relationship is enabled through clever manipulation of the public’s perception of the poor and of wealthy taxpayers, to which within the scope of the definition of “wealthy taxpayers” I will include corporations, because ultimately what I am writing about here is welfare by favorable taxation, and corporations benefit quite obviously the most from the tax code.

In fact certain corporations support that party which offers multiple layers of welfare to the poor because those corporations then benefit from that relationship. Either the poor are at home watching television and buying products advertised by those corporations on television or congress is lobbied to provide favorable taxation to those corporations simply because a corporation is defined as “a person” in the eyes of the law and in legislative terms and so it is argued, lobbied, that since certain citizens are eligible for various types of what is essentially welfare, so then should corporations be eligible as well, corporations which again are viewed as people by the law, something Romney attempted to elaborate on earlier in the year and everyone who hasn’t a clue about such law squawked about it! Oh yes, this is how tax law is created that governs corporations. Corporations are seen as “people” by the law. Hence, tax code is created to govern corporate profits as if they were indeed personal income. Clever, isn’t it.

This is one reason why I do not favor all sorts of social programs designed to help the poor. Nothing wrong with helping the poor. But due to the parasitic tax code in this country there are other beneficiaries, corporations for example, of the tax code who may not need those benefits. Now I believe favorable taxes must be in place for corporations, lower taxes even, but the problem with the current tax code is that the money for the tax welfare has to come from somewhere. And in the way the current tax code is structured, it comes from the middle classes. All welfare, whether it be food stamps, a social program, a medical program for the poor, or corporate welfare, is paid for in The United States by the middle classes. The poor do not contribute and the wealthy escape participation through the tax code. The middle classes are effectively “tax surrogates” paying at both ends, to the poor and the wealthy. And if you are a single taxpayer with no children, you pay even more. That is of course totally unfair tax policy. I myself am single with no children. When all is said and done I take home about two-thirds of my pay yet am ineligible for any social or medical programs because I have no children. If I had children, I would be eligible for free medical care in the state I reside (children make you eligible for social programs and welfare and basically change the government structure for you to a communist government structure and this is why many poor have children, because they know it will then make them eligible for welfare which they would not receive otherwise).

I receive a tax refund but it is a paltry sum when I compare it to a co-worker’s who has children he declares on his taxes. I am a “tax surrogate” in the purist, strictest sense of the term.

America’s tax code is unfair. Tax surrogacy is nothing more than a crime really, perpetrated on the taxpayer, in particular the middle class taxpayer. It may not be a crime as defined by the law, but it is a sort of “social” or implied crime. The middle classes are not flush with cash and able to give it to everyone. Many are instead at the edge of their income bracket, now more than ever.

I don’t know if at this point in the country’s history we can change the law. But I felt before we could change the law I had to give the condition from which the middle class taxpayer suffers a name. I call it “tax surrogacy.” Someone may have already thought of it. That’s great.

Let this then simply be my explanation of what is happening in this country with regard to taxes and why I believe something needs to be done about it.

Copyright © William Thien 2012, 2013, 2014

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