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Posts filed under Taxes

Simple solutions to difficult dilemmas

A week ago over at the Mises Institute, Lee Wishing ran into a touchy ethical dilemma: it turns out that this year he will be netting $646, transferred from other people’s pockets to his, courtesy of the behind-the-scenes number juggling of TurboTax and the IRS’s refundable child tax credit for his family’s four children:

Line 43 of our 1040 shows that the tax on our income is $3,354. Line 51 notes that the child credit is $3,354 making the total credits, line 55, offset our tax liability.

But my zero tax liability isn’t the point of this story. I really have a negative tax liability. The federal government will not only return the money I had withheld during the year, they’ll be kicking in another $646, which is the difference between the total of the child tax credits on line 55, $4,000, and my tax liability of $3,354 on line 43.

Believe it or not, the federal government is going to give me $646 of your money. The formula on Form 8812–the Additional Child Tax Credit form–that determines I get an extra pile of dough is complex. I checked the calculation and it was correct. I called a tax accountant and he said it was correct.

But is it right?

My six-year-old daughter, Mary, asked me what I was writing about.

I explained the concept: I just filled out our tax forms and I learned that the federal government will be giving us money that doesn’t belong to us. They will be taking it from other people and giving it to us.

That’s not right! said my first-grader.

Eight-year-old daughter Sarah was listening. I don’t like that. I mean, I don’t like that the government is going to take money from other people and give it to us, she said sadly.

Gosh, that’s clear thinking. But the tax system blurs clear thinking.

— Lee Wishing, Mises Institute (2005-04-05): 1040 Plunder

Blurs it enough, I guess, that Lee doesn’t come to any resolution by the end of the article, even with young Mary and Sarah’s prodding. However, I wrote my friend Dr. Anarchy for advice, and she pointed out that there is a simple solution to Lee’s problem. Lee’s worried because the federal government took money from other people against their will, and now they’re giving some of it to him. What to about the double burden of a guilty conscience and $646.00 he doesn’t deserve?

Simple. I’ll take it.

I am one of those unfortunate taxpayers out of whose pockets Lee’s $646 was taken. He can solve his problem by sending $646.00 to me, Charles Johnson. I’d be glad to send copies of the 1040s to prove my net liability to the Feds over the past few years: this year I’ll be coughing up $156 in taxes and fees. Last year I paid about $350 all told. My forms for 2002 are back in Auburn, but I am sure that I rendered at least $140 of tribute to the federal government. So by sending me, Charles Johnson, $646, Lee can not only solve his ethical dilemma and save face in front of his young daughters, and help out someone who (as you might guess from the low bills) would be glad to get the money back, he can also make his own contribution to rectifying the injustices of Leviathan.

You might say that any other taxpayer has just as good a claim to Lee’s $646 as I do. True, but Lee can’t afford to pay them all, and $646 is all the restitution he’s on the hook for–the rest of his tax refund is just getting his own money back. Why not try to distribute it evenly between all the net tax recipients? There’s hundreds of millions of them; trying to split $646 between all of them would mean that, effectively, no-one gets any of their expropriated money back on the margin. But by giving it all to me, Charles Johnson, Lee can ensure that two people are restored to a state of libertarian justice: he won’t have his expropriated gains anymore, and by giving the block of money to me I’ll be set back to where I was before I paid out taxes for the past 3 years. What’s so special about me specifically? Well, I could use the money, and it was my idea. The rest of you can find some other net tax recipient with a guilty conscience and homestead a claim to your money from their surplus.

What an opportunity for Lee: he’s just $646 away from libertarian justice. I’m glad to help him out. It won’t take any ballot boxes and it won’t take any political parties; all he needs to do is join a nonviolent direct action against State expropriation. I gladly accept credit cards, cash, or electronic funds transfers.

Happy Tax Day.

Bureaucratic rationality

Cleaning out some of the older links from my newsreader brought me this old news about a bit of Yuletide scroogery from the IRS, courtesy of Alina at Totalitarianism Today (2004-12-23):

As if payroll taxes weren’t enough– here is an example of the IRS almost literally whisking the Christmas turkery from the table-tops of hard-working Americans. According to Brian Hindo of Business Week, many companies used to hand out turkeys this time of year. Now, however, 41% give out coupons, which can be redeemed at any store for a turkey or a tofu turkey or whatever suits the employee’s fancy.

Sensing a little possibility for happiness, the IRS immediately put its best and brightest bureaucrats on the job. Heaven forbid an employee use that coupon to purchase a tub of Whip Cream rather than a fine-feathered friend. The result? The judgement that gift certificates, unlike actual turkeys, are a cash equivalent– and therefore taxable.

With apologies to H.L. Mencken and Max Weber, I think our theoretical lexicon needs revision. Thus:

Bureaucratic rationality, n.: The haunting fear that someone, somewhere, may be happy without permission.

The Day After Tomorrow

First of all, John Kerry is a douchebag, but I’m voting for him anyway.

Yes, I know he’s a statist, and a lame-o weak-kneed liberal to boot. Yes, I know that he voted for the authorization of force against Iraq, and that he hasn’t announced any plans to do what any rational and sane person should realize it’s time to do–withdraw immediately and completely. Yes, I know that the process I’m going to be participating in tomorrow has no legitimate authority whatsoever no matter who I vote for–and that strategically, replacing one creepy-looking imperial Executive with another slightly less mad one is no means to long-term change. That sucks, but it doesn’t matter.

It doesn’t matter, because voting is a legitimate form of self-defense and I live in a swing state where a handful of votes may determine whether 17 electoral votes go towards throwing George W. Bush out of the White House or propping up four more years of the same.

Yes, most of the reasons I have for voting for Kerry are purely negative ones. He’s bad on the war, sure–but not nearly as bad as its big fat liar of an architect. Yeah, he’s an unreconstructed statist with a bad record on civil liberties–but not nearly as bad as George W. Bush, who has presided over the largest increase in State bureaucracy and spending since the Great Society, and who believes himself accountable to none save God alone. Sure, his campaign has treated feminists like crap, but, Jesus, it’s not like a second Bush administration is going to bode well for the success of feminist activism. And all of this is important. Given that Kerry is not even worse than Bush (and he’s not), one of the single most important reasons to take the time to get out and vote for Kerry tomorrow (if you’re in a swing state, as I am) is that after everything he’s done, George W. Bush must be thrown out of office. If he’s not punished after all of this, then that means one more blow to the fragile bulwarks remaining for justice and freedom in this country. We have precious few opportunities to pull back the reins on galloping Caesarism, and tomorrow is one of them; there’s no excuse, if you have the chance, not to pull as hard as you can.

And there are a couple of positive reasons to vote for Kerry. First, nearly all of his faults are faults that Bush shares or exceeds. But he is good on abortion; he won’t continue the present gang’s war for control over women’s bodies. Don’t think abortion’s very important? Well, you should; if you don’t think that the right of women–also known as “the majority of the population”–to control their own internal organs, or the use of systematic State violence against women to tread on that right, is a really big deal, well, you had better check your premises. And secondly, Kerry is bad on almost everything else–but a possibility for making things better exists under a Kerry administration that will continue to be vanishingly small in an entrenched, contemptuously secretive, smugly self-satisfied second Bush adminisration.

All that said, we need to remember, as it comes down to the wire, that tomorrow is not the Battle of Armageddon. The world will go on whoever wins, and we will need to figure out what we are going to do–because we are going to face some pretty hefty challenges whether Kerry or Bush is partying at the end of the night (or whether both of them are biting their nails waiting on further legal developments).

So I know what I’m going to be doing tomorrow–voting and then volunteering to go door to door for a few hours before I turn in. And I figure you know what you are going to be doing, too. But here’s the question: what are we going to be doing the day after tomorrow? Come November 3, what can we do that will move things forward whether it’s Bush or Kerry we’re going to have to be dealing with?

For my part, I don’t know entirely, and I’m interested in hearing what y’all think. (Comment away!) But I do know one thing for sure.

I sure am tired of following these assholes.

I’m tired of the two-party duopoly, and I’m tired of incumbents. pinning my hopes on blockheads like Kerry and I’m tired of listening to know-it-all professional blowhards speculate about the color of Kerry’s socks and its impact on undecided Soccer Moms. I know that we are going to need to keep organizing and take the fight to them no matter who wins, but I can’t take federal representative politics much longer and I can’t say that the prospects for meaningful, long-term change through picking between these guys look tremendously bright.

Yeah, Deaniac grassroots politics would help. Sure, we could use instant runoff voting and term limits and lowered ballot access requirements. Fine, I’ll put in my two cents’ worth in favor of building independent parties. I don’t dispute that that would help things a bit. But the more that I think about it the more I think that we (address this to my Libertarian comrades or my Leftist comrades or my Anarchist comrades, whichever you prefer) ought to re-think how we are trying to get things done when we’re working undercover in The System. Because I, for one, am about at the end of my rope.

I’m sure that Kennedy and the rest of the No Treason! crew will take this as as good an opportunity as any to argue that building movements is a dead-end game. I don’t buy that, yet, for a lot of reasons–I suspect that a rigid distinction between volunteer politics and businesses involves some confusions about the nature of the market in a free society, and I have a lot more faith in ordinary people and the historical record of people’s movements. For the time being, at least, I’m more than willing to sign on for political organizing, activism, and evangelism–even working in the belly of the beast, if need be, to help give people some space to breathe and a chance to defend themselves. But not the way we’ve been doing it.

When I go to the polls tomorrow, I won’t just have the chance to pick some idiot or another for federal races. I’ll also have the chance to vote directly on whether or not a number of proposals will be made law. I can do this because Michigan has voter initiatives; and when I vote on an initiative I don’t have to worry about spoilers, parties, trade-offs between candidates, or anything of the sort. It’s a simple up or down and I can make my choices on each issue on the ballot independently–rather than trying to figure out which dude will line up with more of my choices on the whole than the other (and whether that dude can get elected or whether I should vote for someone who’s a bit worse but in a position to win, and…).

Nearly half of the states in this country empower you and I to gather signatures and put laws straight on the ballot without having to lobby legislators or roll logs or hope the least-worst major candidate might consider making a speech about it sometime. Most of us who have been paying attention to voter initiatives have been spending our time fighting them–with good reason, when the initiatives being put out are idiotic stuff such as Amendment 2 in Michigan or Measure 36 in Oregon. But why are we letting these assholes make all the first strikes? We’ve been building a vast network of interlinked volunteers with a do-it-yourself political ethic, from the upsurge of the antiwar movement to United for Peace and Justice to MoveOn and the Dean campaign. So come November 3, how about we start putting those resources to work in the 20-odd states with voter initiatives? (And while we’re at it, bringing them to bear on the state legislature in states that don’t yet have voter initiatives.)

My suggestion would be to focus on campaigns that clearly put the case to the people that the government needs to get its hands out of the till and take its boots from off our necks. Medical marijuana ballot initiatives are a good start–they’ve been extremely popular where introduced and when they win (which they often do) that means one more state in which the federal drug goons have to either get mired down in extremely unpopular campaigns or else just give up. That should be expanded to an effort to roll back the racist War on Drugs more broadly. And here are some other ideas to ponder:

  • Initiatives to curtail corporate welfare–say, for example, abolishing corporate hand-out programs or restricting the power of state and local governments to use eminent domain for corporate development.

  • Death penalty moratorium bills

  • Ending taxes that disproportionately burden people living in poverty–for example, rolling back sales tax on food and other necessities.

  • Resisting the federal warfare State–by passing bills requiring the state government to refuse to comply with the PATRIOT Act, any future draft, or whatever other national security assault on our rights you’d like to single out.

  • Some resources for making it easier when we do have to deal with the party hacks–term limits, recall statutes, lowered ballot access restrictions, instant runoff voting, ….

All of these are simple, practical, incremental changes that would do some good, allow for coalition-building between Leftists, libertarians, and (sometimes, I suppose) small-government conservatives too. We have the resources to mount big door-to-door campaigns, with volunteers and with money raised from supporters; we have the resources to do some real good over the next four years whoever is in office. Better yet, we could start actually talking with each other like rational human beings about issues and whether or not some particular law should be made, instead of dickering over who looks more Presidential and whether Hordak or Smiley Face came off as more of a mindless hack in the latest tete-a-tete.

So, in that spirit, I’m resolving to pitch myself into grassroots politics come November 3. Real grassroots politics–not browbeating the grassroots into supporting some least-worst candidate’s politics, but rather writing letters to the editor, working more with local political organizations. And I’m going to start looking for, and talking about, and acting on, getting some voter initiatives that will make a real move forward on the ballot. I’m tired of following the idiots in the suits; it’s time to take the resources that we’ve got and take our case to the people.

Further reading

Death and Taxes

Posting on Geekery Today may be held up for a while in the next several days, as I grudgingly prepare the paperwork for my annual surrender of tribute to the State.

In honor of the occasion, though, you can follow my argument on Slashdot with Shakrai, who castigates those who would dare to cheat the State of its booty. Since I argue that taxation is nothing more than robbery with more paperwork, I can’t muster much outrage at those who lie to the taxman in order to keep some of their own damn money (thank you very much!).

For what it’s worth, while I don’t see anything morally wrong in cheating on your taxes, that doesn’t mean that I do it; since I make most of my money through self-employment I no doubt look pretty suspicious to the IRS from the get-go, and I have no desire to encourage them to come along and help me get my finances in order by being less than scrupulous in my reporting. It just goes to show that while nothing immoral could count as expedient, lots of things that are morally permissible are still not particularly smart. Such is life in this possible world.

photo: Donald Rumsfeld
photo: Evil Lord Skeletor

In international news, Donald Evil Lord Skeletor Rumsfeld has announced that the situation in Iraq is not out of control. Meanwhile, in Iraq, your tax dollars are hard at work:

FALLUJAH, Iraq (AP) U.S. Marines battled insurgents for control of this Sunni Muslim stronghold Wednesday, calling in airstrikes against a mosque compound where witnesses said dozens were killed in six hours of fighting. An anti-U.S. uprising led by a radical Shiite cleric raged for the fourth day in southern cities.

The Abdel-Aziz al-Samarrai mosque was hit by U.S. aircraft that launched a Hellfire missile at its minaret and dropped a 500-pound bomb on a wall surrounding the compound.

The U.S. military said insurgents were using the mosque for a military fire base. Iraqi witnesses estimated 40 people were killed as they gathered for afternoon prayers. U.S. officials said no civilians died.

An Associated Press reporter who went to the mosque said the minaret was standing, but damaged, apparently by shrapnel. The bomb blew away part of a wall, opening an entry for the Marine assault. The reporter saw at least three cars leaving, each with a number of dead and wounded.

Chaos spreads, people are murdered, and you and I are forced to foot the bill for a war that many of us wanted absolutely no part of. Sooner or later there will be a reckoning for the terrible destruction that is being wrought on Iraq; I can only hope against hope that terrorist logic will not win the day, and that we will not be forced to face the consequences yet again for things that other people decided to do–using stolen money and professing to act on our behalf.

The War on Iraq One Year On: Countdown To Regime Change

The World Still Says No To War: M20 march in NYC

Today is the first anniversary of the Bush administration’s war on Iraq. hundreds of thousands of people are taking to the streets in protest of the war, the occupation, and the lies that were used to murder some 8,000 – 10,000 Iraqi civilians in a bloody game of geopolitical chess, and to create a rudderless, hopeless war between heavy-handed occupying forces and brutal terrorist guerillas. President Bush, meanwhile, keeps repeating the same old crap, perhaps in the hope that it will start to stick through sheer force of repetition. Apparently we are supposed to forget the deception and the manipulation and the bullying of dissenting voices, and the simple fact that the past year has proven that we were right and he was wrong, and pitch in with support for this bloody occupation:

No concession will appease their hatred. No accommodation will satisfy their endless demands, Bush said after deploring last week’s Madrid bombings, which were followed by the election of a new prime minister eager to remove Spanish troops from Iraq. There can be no separate peace with the terrorist enemy. Any sign of weakness or retreat simply validates terrorist violence, and invites more violence for all nations.

As if trying to prove a point, Bush trots out every tired neo-conservative creepy spendthrift fascist trope about the war: the terrorists as the new Hitler, Bush and his cronies as the new Churchill, the new Chamberlain in Decadent Europe and the rest of us who feel just a tad squeamish about a completely unrepetant gang of lying warmongers who profess to be on our side. But the real battle cry here is not from World War II; it is from Vietnam. Apparently we are supposed to persist in a deadly and useless occupation of a Third World nation that the U.S. government annihilated on fabricated grounds because if we pull out now, we will give a sign of weakness. We will send the wrong message.

I don’t know quite what to say to this appalling idea — except to quote from a fine film:

It seems you burned the wrong village.

They always say that. And what does it matter? A village betrays us, a village is burned. The point is made.

Your point, their village.

And also to quote from a fine website, which adds a heart-rendingly fresh update of the theme. in the wake of the 3/11 massacre in Spain and the upsurge of public rage over the Aznar government’s manipulations and lies:

El gobierno miente, manipula, extorsiona, oculta información, asesina, no escucha, insulta, acusa a la oposición, le importa una mierda 200 muertos con tal de sacar votos y no perder, somos objetivo de terroristas islámicos por culpa de la prepotencia, la chulería, el afán de protagonismo, los aires de grandeza de un pequeño gran hijo de la gran puta llamado Aznar.

Vuestra guerra, nuestros muertos [Perdido en Madrid]

The Government lies, manipulates, extorts, hides information, murders, doesn’t listen, insults, accuses the opposition; 200 dead aren’t worth shit so long as they get votes and don’t lose; we’re the target of Islamic terrorists and it’s all the fault of the power-mongering, the insolance, the eagerness for heroism, the airs of greatness of that little son of a bitch called Aznar.

Your war, our dead [Lost in Madrid]

In spite of the warhawk hand-wringing over cowardly Spaniards and their appeasement, the electoral crash-and-burn of the Aznar gang is a courageous step: a popular upsurge against the politics of fear, and emboldened by their much-touted white-hot rage—turned not only on the thugs who inflicted this slaughter on innocents, but also on the lying thugs who launched a dirty war and left 200 innocent madrileños to face the consequences. That the Spaniards can find the courage to throw the bastards out in 2004 gives me some hope that we’ll be able to do it here, too.

This is connected to a broader point about terrorism, war, and the State; it’s a point well worth reflecting on on this anniversary. The essence of the State is irresponsibility: that is, States (as opposed to voluntary associations) always exist in virtue of one group of people inflicting the costs of their decisions on others against their will. The most mundane form of the phenomenon is taxation; the most egregious are War and State terrorism. This is something to remember whenever some politician is droning on about duty, sacrifice, and glory; they mean their glory taken from your duty and sacrifice. George W. Bush will never pay for the destruction that he has wrought. You will pay for it when you surrender your taxes in about a month. Donald Rumsfeld will not be the one who faces death for his agenda in the Middle East. The troops he has deployed will be the ones who have to face the consequences of his decisions. José Maria Aznar and Tony Blair will not be the ones killed in the subway for the war they helped unleash. All too many of us—Spaniards, Britons, and Americans— are the ones who have been put into the crossfire by their reckless war-mongering. Should we be surprised that the health of the State is a disease that we have to live with, and they don’t?

Anarchism: Because it isn’t your fault that George W. Bush is a dickhead.

For further reading:

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