Taxed Enough Already

I attended the Tea Party Protest at Lafayette Square today and, in addition to being soaking wet, came away with several observations.

Whatever the accusations that these were "astroturf" campaigns, not representing the opinions and frustrations of real people, I experienced a true grass roots protest today. Common Americans came out in droves to support fiscal responsibility, while questioning run away government spending and taxation. Talking with them, I found out that the concerns of government control abound no matter the stage in one's life. One man was a retiree who was concerned about the promised reinstitution of the death tax. His concern was that he had worked his whole life as a teacher to leave his money to his grandchildren (who haven't been borne yet).  If he waits that long, he fears that he'll lose up to half his life savings to the Federal government.  Given the promise to prohibit tax shelters and reinstitute the estate tax to a rate of 50%, his concern is legitimate.  (As a law student I know that he can create a trust and pass this money on in a different name; but why should have to higher an attorney and jump through these hoops?)

I met soccer-Moms and Dads who think that using their money to fund a bailout of failed corporations is terrible mismanagement of their taxes.  They aren't opposed to all taxes, just the wasteful spending that is currently going on. (See this rant on waste and the "stimulus" package.)  What they fear the most is passing on an insurmountable debt to their children.  The photo at right sums it up best: "How much extra in taxes will this baby pay because of our spending choices today?"

I also met fellow law students like myself, who are concerned about our ability to earn a living, pay back massive amounts of school debt and endure the burden of increased Federal and State taxes.  

For instance, the median law student graduates law school with approximately $75,000 in debt. The average attorney working in private practice his first year earns around $65,000. Interest on these loans (approximately $4500 given a 6% interest rate) is deductible. Thus, the amount of taxable income is more around $60,000. However, assuming this law graduate lives in New York and is married, she will pay $16,224 in taxes. Thus, this attorney is living in one of the most expensive cities in the world on $45,000 a year. Factor in the cost of an average studio apartment in New York City for a year ($29,000), the minimum payment on those student loans given a 20 year payment schedule ($5,500) and our promising young attorney has approximately $600 dollars a month left to spend on groceries, utilities and other living expenses.  She put herself through law school for this?  How will she save for her children's college education?  How will she give to worthwhile charities around her?

Note that the largest expenditure here is housing--likely exacerbated by rent controls--followed by taxes. Housing is pretty essential and you have to pay the price that's out there. Government taxes are discretionary.  They can be made lower if Congress chooses to be fiscally responsible.  

These may not be the poorest in America, but they are the most common.  Who is representing their voice of common sense and reason?  Who is looking out for their well being as we tax and spend our way to bankruptcy?

Several thousand people showed up in the rain, during the middle of the work day to take a stand against the current administration, Congress and government as a whole.  We may not be the fawning throng that follows President Obama without question, but we got the ball rolling. We joined with tens of thousands of Patriots today and announced that we will not idle while the State becomes a giant that taxes us to death, steals our earned wealth and burdens our liberty.  Some may deride that.  

I, for one, stand back and applaud this devotion to civic duty and liberty.