The National Tax Day Tea Parties held today in Sacramento and around the country were clever media events and may have raised elements of legitimate issues. But were all these protestors angry at the right people?
According to a recent report on NPR, the United States Treasury estimates our country loses $123 billion annually in tax revenues owed by scofflaws who avoid taxes via such tax haven nations as the Cayman Islands, Switzerland and the Dutch Antilles. If we were able to reign in these offshore tax cheats, the recouped revenue would be so great that it would cut taxes by 12 percent for every American taxpayer, says the story’s interviewee, David Cay Johnston, a Pulitzer Prize-winning journalist and author.
Twelve percent? Staggering. The flip side of this factoid reveals a brutal truth: law-abiding, tax-paying Americans of all stripes and incomes — from the working poor and middle class to the upper class and the rich — are carrying the freight for all the wealthy American individuals and corporations gaming the system through international tax havens.
The Blue Dog doesn’t have a single bone to pick with Americans who have come by their wealth honestly and legally — be it from hard work, luck, ingenuity or inheritance. If you’re rich, good for you. Just pay your taxes. Most do, with those in the higher income brackets paying the bulk of the taxes in this country. Punishing the law-abiding rich by dramatically redistributing their wealth is ultimately counterproductive and antithetical to the American Dream. People with means are neither the enemy nor the target of this post.
But those who don’t pay a dime because they find shelter in the Dutch Antilles or some other tax-haven nation? And we subsidize this? Now that boils the blood.
So let’s direct our scorn and reformist energy into cutting our taxes by 12 percent by going after those who don’t pay any taxes and are therefore stealing from the rest of us. It’s a bit ridiculous to think we in California can do much about any of this. Maybe a CalPERS divestiture protest that blackballs tax haven nations. Who knows. These are are thorny, complex matters involving sovereign nations and international law.
The bottom line for the Blue Dog is that he had to cut painful checks to Uncle Sam and Uncle Arnold a few days ago. Like most Californian residents and small business owners in tax season, he grumbled and muttered a cliche about death and taxes, sucked it up, paid what he owed, then went back to work. No time or interest in the Sacramento tea party. But one in the Cayman Islands? Where do we sign up?