Your federal income tax payment is due today, April 18. Technically, April 15 is the legal deadline, but not when that date is on a weekend. Then the date is pushed back because of Emancipation Day, the anniversary of freeing slaves and celebrated only in Washington, D.C. on April 16 every year. Its public employees had April 17 off because the 16th was on a weekend so taxes were then due on April 18. Taxpayers in Maine and Massachusetts don’t have to pay state taxes until tomorrow because of Patriots’ Day, a legal holiday celebrated on the third Monday in April, but their federal taxes are still due today.
April 15 was still a day of protest. In the past, Tea Party members led small groups to oppose payment of taxes for all the government benefits that they receive. This year, opposition came from people representing the 74 percent of the population who want Dictator Donald Trump (DDT) to release his tax returns. DDT may have ignored North Korea in his weekend tweets, but he addressed the marches in 200 cities and at least 48 states with at least 120,000 people. The number was probably much higher than that because several cities undercounted its crowds. Seattle and Washington, D.C. each numbered at least 25,000. DDT’s response was that he didn’t need to release his returns because he had already won the election, trying to cover up the continuing ramifications of his massive financial connections including collusion with Russia. He called the marches “small” and accusing the protesters of being “paid.”
The myths of small crowds and paid protesters began with the National Women’s March and the airport protests over Trump’s first Muslim ban during his first two weeks in office and continued for every gathering. Last February, Breitbart started the lie that George Soros is funding the protest movement.
Even hundreds of protesters marched at Mar-a-Lago where DDT vacationed for the seventh of 13 weekends since his inauguration brought out hundreds of people. His trips have cost taxpayers more than President Obama’s trips over his entire eight years, and Palm County (FL) alone has been charged $2 million for his trips. They chanted “Pay! Your! Taxes!” and waved signs calling him “Chicken in Chief” because of DDT’s shift in 40 years by refusing to release his returns. “Chicken Don” symbols replaced the women’s march pussy hats.
Debbie Wehking, a 66-year-old a school principal from Miami, said:
“He needs to show us his tax returns so that we can tell who’s influencing his decisions, who he owes money to, who he’s doing business with — really so we can figure out whether he needs to be impeached.”
DDT was forced to take a longer route to his golf club to avoid the crowds. In Washington, D.C. a sign stated, “My taxes pay for your golf.” His claim that he cannot release his tax returns no longer holds any water because this is a new return. Also, presidents and vice presidents are automatically audited every year but still made public. In another opaque movement, DDT will no longer release White House visitor logs.
Republicans like Oregon’s representative Greg Walden claim that DDT should have his privacy. Others say that it doesn’t matter or that no one cares contradicted by the marches. Over one million people have already signed this petition.
Last year, individuals paid 49 percent of all federal tax revenues with businesses paying only nine percent of the $3 trillion. Worker and employer payroll taxes, commonly called Social Security and Medicare, account for another 33 percent, and another 3 percent comes from excise taxes with the last five percent labeled as “other.” Business taxes were down from an average of 14 percent last year, and huge corporations like GE and PG&E may pay absolutely nothing. Up to 118 individual breaks benefit companies and the wealthy by almost $1.15 trillion, and 80 corporate breaks net them $185.2 billion.
Technically, the federal corporate income tax is 35 percent, which the GOP wants to drop by over 50 percent. Yet the average taxation for 258 profitable Fortune 500 firms over eight years was 21.2 percent, and 100 of them paid zero taxes in at least one of those years. For example, major polluter North Carolina-based Duke Energy netted $18.2 billion in those eight years and paid no taxes for seven of them while getting $482 billion rebates. That makes their tax rate a minus 2.6 percent.
At least 23 percent of income taxes go to the military, not counting veterans benefits, debt from earlier wars, etc. Yet only 22 percent for this amount is for pay and benefits; almost half of military taxes go to multinational corporations making billions in profits. Domestic needs such as education and the safety net get far less money. [visual] For example, in 2015 taxpayers gave just one corporation, Lockheed Martin, $36 billion, 80 percent of its entire revenues. That money was six times the amount for all foreign aid in 2016.
How government spends your taxes:
- Defense: 15 percent, not counting veterans benefits and almost 50 percent higher than 20 years ago. [visual]
- Health care: 13 percent.
- Interest payments: 6 percent, because of the $20 trillion in national debt largely caused since the George W. Bush tax cuts and wars.
- Income security: 13 percent, including retirement and Temporary Assistance to Needy Families at its lowest level since 1998.
- Benefits for veterans: 5 percent for 22 million veterans.
- Education: 3 percent.
- Social security: 24 percent.
- Medicare: 15 percent.
- Foreign aid: under 1 percent.
- Other: Under 5 percent, including crop subsidies, space travel, highway repairs, and national parks.
Republicans want to eliminate many of the programs above, but they would be hurting their own constituents. GOP-managed states, aka red states, typically get more federal money back than they send to Washington. Nine of the 11 states that get more than $2 back for every dollar sent to Washington, D.C. are red, and eight of the ten states most dependent on federal funding are red. South Carolina, the queen of federal welfare, gets the most money: for every $1 that the state pays in federal taxes, it receives $7.87. One legislator said, “If you shut down 25 percent of all the federal dollars coming into South Carolina, the economy of South Carolina would collapse.” The federal $59.4 billion sent to South Carolina in 2014 was nine times the state’s annual General Fund budget. South Carolina was ranked the eighth most dependent state in Social Security payments. The state also has the ninth highest level of poverty with almost 28 percent of its children living in poverty along with a horrible health care system, bad public schools, climate-changing coal fired plants with no regulations, lower drinking water standards and other ways to damage its residents.
Only one of the least-dependent ten states, those receiving less money from the federal government that it sends, is red. In short, the lower the financial benefit of federal government in a state, the more likely it is to vote for federal government.
The practice of sending more federal money to Southern states than the government receives is an inheritance from the 20th century when that region voted Democrat, and senior members of Congress sent federal money to their states with contracts, projects, and installations. The other part of the equation is the extreme poverty in those areas. The need for a “safety net” in red states requires hundreds of billions of dollars annually to help the neediest because their own states won’t provide aid.
GOP-controlled red states belie the fantasy that cutting taxes drives growth. Blue states accomplish growth from investments in education, infrastructure, urban quality of life, and human services. These states have nine of the 10 top-ranked universities in the country, the highest median household income in nine of ten states, the greatest generation of technological innovation, and the highest average life expectancy. Despite globalization, local conditions of education, research and development, and promotion of idea exchange and talent development are vital. North Dakota’s oil helped its economy, but it looks more like Saudi Arabia than Silicon Valley. Hubs of “blueness” like Austin (TX) can exist in red states, but are forced to fight against government repression of wage rules and public investments.
Possibilities for blue states? A Bluexit (“Bloo-ksit”) along the lines of Brexit, the British exit from the European Union. If red states want only the U.S. military, paper currency, and the national anthem determined at the federal level, blue states can keep its resources to build up its cities and states.
Happy Tax Day!