Doing Something About Higher Taxes
Just when you thought it was safe to forget about taxes for another year, a couple of Washington, D.C.-based groups have released information that shows the tax picture is becoming decidedly bleaker.
The Tax Foundation says “tax freedom day”--the day when the average American would have earned enough that year just to pay his federal, state and local taxes--won’t come until May 5, the latest ever. And those who live in high-tax states such as New York and California have to work even longer to pay off their tax bills.
Meanwhile, the Family Research Council reports that the federal income tax burden is crushing families with children. The tax burden, says the Council, which lobbies for the benefit of traditional families, has increased 300% on a family of four in the past four decades, while single and childless couples have suffered much smaller tax increases.
Worse yet, federal legislators who promised sweeping tax cuts only last December seem to have lost their enthusiasm for getting tax legislation passed this year. The two dozen tax-cutting bills put forward some months ago have died, there are no new plans, and although the President and some members of Congress promise to submit a second round of tax-paring packages, some Washington insiders say there’s virtually no chance that a significant measure will pass this year.
“A tax cut just can’t happen with the current Congress and the current President because they are so at odds,” says A. William Ahern, a spokesman for the Tax Foundation. “It seems both sides are trying to score political points with tax-cut proposals that won’t be agreed to by the other side rather than make meaningful concessions that could result in an agreement to cut taxes.”
Furthermore, the Tax Foundation’s annual survey of state governments indicates that state taxes could climb by about $7 billion this year--less than the state and local tax hikes of the past two years, but still a significant increase that is likely to depress living standards for those who receive only modest wage increases in 1992. And since some states have hiked taxes to the verge of revolt, this year’s particular increases are likely to be insidious plans that strike some groups far harder than others.
California, for example, plans to raise fees to attend public universities. Georgia proposes to triple driver’s license renewal fees. Florida wants to broaden sales taxes to cover such items as cable television services, sewers and garbage collection. Iowa wants to tax dating services and limousine rentals.
Legislators contend that huge budget shortfalls require higher taxes or cutbacks in vital services. But taxpayer advocacy groups such as the Citizens for a Sound Economy in Washington say that at least some of the problem could be solved by cutting government waste. The group says the latest “outrage” is a federally funded “$2-million boondoggle to develop and stimulate sales of Native Hawaiian handicrafts.” Nearly $1 million of that total will go to build a single canoe.
Americans who are irritated by their tax bills needn’t sit idly by while tax rates soar, taxpayer advocates say. There’s a simple and effective way to fight: Write a letter.
“Letters are among the few things that Congressmen really pay attention to,” Ahern says. “Most congressional offices are very much constituent-oriented, and letters tell them what their constituents want.”
Those concerned about a particular issue are advised to be specific and brief. Also be aware of which issues relate to federal taxation and which to states and local governments, professional lobbyists suggest.
Consumers who choose to write about federal tax issues should address letters to U.S. senators and members of Congress. Those concerned with state taxes should write to members of their state Legislature, while those protesting city taxes and fees can write to members of their City Council.
Anyone unsure about who represents them can usually get the information by looking in the government section of their local phone directories. If the information isn’t there, call the general number for the U.S. Capitol, state Capitol or City Council and ask for the name of the person who represents your district.
Phone calls can also be an effective means to lobby legislators. Many representatives have their staff members tally calls on both sides of heated issues.
