The Foundry

Congratulations! You made it! Tax day is finally here and you are free from filing your income tax returns for another year. Celebration is in order just for navigating the labyrinth that is the federal income tax code.

While you celebrate finally being done with the arduous task of filing your returns, remember, just because you don’t have to do it again for another year, that doesn’t mean you aren’t paying taxes each and every day from now until then.

Here is a partial list of the taxes we pay throughout the year, in addition to federal, state, and in some cases, local income taxes. We pay sales taxes on most of our purchases; corporate income taxes through lower paychecks, fewer jobs and higher prices on the products we buy; capital gains and dividends taxes on our investments; tobacco taxes if we smoke; alcohol taxes when we drink beer, wine or spirits; gas taxes when we drive; energy taxes when we use electricity; communications taxes on our phones and cell phones; estate and inheritance taxes when a loved one passes on; payroll taxes on our wages; and property taxes on our cars and homes.

This list is by no means exhaustive. These are just some of the more well known taxes. The list could go on and on.

Everyday when we wake up we are taxed from the second we step out of bed until the time our heads hit our pillows at night. We are even taxed when we sleep! (Your alarm clock uses electricity!)
These other taxes hide from our consciousness because we don’t have to file a complicated return pertaining to them each year. But they hit our wallets and pocket books just as hard and have just as much of a negative impact on the economy.

The endless list of taxes Americans pay mean we can’t afford any of them to increase. Especially during this severe recession, taxes should not be raised on anyone. Even those making over $250,000.

In fact, now is a good opportunity to make the 2001 and 2003 tax cuts permanent for everyone, and further cut taxes on income and investment to spur recovery.

Fundamentally reforming our entitlement programs would provide further economic relief by removing the need for future tax hikes.