(8/04) The promises of yesterday are the taxes of today. President Franklin Roosevelt looked at it another way when he said, “Taxes, after all, are the dues that we pay for the privilege of membership in an organized society.”

Do you know how much you pay in taxes each year? Not just Vermont income taxes, but all the other taxes paid directly or indirectly.

It’s really hard to calculate our total tax burden. If the tax or fee is small enough tax payers are oblivious to the cost and I’ve actually seen legislators use that strategy in establishing tax policy. We pay sales, payrol and utility taxes, surcharges and fees, an animal neutering tax, petroleum clean up tax, a waste tax and city franchise tax in Burlington, energy efficiency charge, telephone life line charge and I’m sure many other hidden taxes. You’re a tax evader if you don’t smoke, drink or drive a car

To get a better perspective of our tax burden, I’ve compiled the tax load for a man I call Jake who is in his thirties, earned $35,000 last year, isn’t married and has no children. Jake rents an apartment, so property taxes were not considered.

The following table displays the taxes paid by Jake. You’ll note that the federal income tax is his largest liability followed by Social Security/Medicare. Though the state income tax is a distant third, the gap closes when you add all the other taxes in the table below. In total, Jake paid $8857 in taxes or 25% of his income. That’s one dollar in four sent to some sort of government agency.

Taxes Paid in 2003 on $35,000 income

Federal Income      $3,734
Social Security     $2,170
State Income         $ 981
Sales Tax            $ 882
Medicare             $ 508
Gasoline             $ 300
Phone                $ 182
Cable                $ 64
Utility              $ 36

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Total                $8,857

This information is revealing but it misses all hidden taxes and regulations. It’s difficult to calculate the other taxes but in a study by researchers W. Mark Crain and Thomas Hopkins in a report for the Small Business Association, they showed the regulatory liability to be high. Jake’s total tax burden could easily exceed 26%.

In looking at the utility taxes paid, an efficiency charge is paid to the state for the “free” energy efficiency lights bulbs we get at the county fair or for appliance and building efficiency rebates. On Jake’s cable bill there’s a sales tax on his cable charge, a public access fee and FCC regulatory fee. The public access money goes to pay for his local public access channel. Jake’s telephone bill includes a federal excise tax, state sales tax, state and federal universal services fund surcharge for 911 emergency service and service to low income and hearing impaired patrons. For wireless, there’s also a phone number portability fee and a small universal service charge for Maine. Taxes and fees on wireless are over 10% of the bill.

All this tax money pays for services. Jake gets police, fire and armed service protection. His gas tax pays for roads and bridges but some state money is diverted to pay for the state operating budget and public education. Medicare and Social Security covers the services and benefits for seniors although someone 35 years old, like Jake, wonders whether funds will be available when he becomes eligible. Jake receives no farm subsidy, corporate tax breaks or National Endowment grant for the Arts. Much of his earnings go to pay for government programs and services not directly beneficial to him.

Jake may debate the merits of some government spending; but policy makers agreed at one time that these government functions are necessary. However, will our corporations cease to exist if corporate welfare or farm subsidies to tobacco growers stopped? Some question art projects funded by our National Endowment for the Arts or whether seniors who are financially secure should receive the same social security payment and health benefits as those who are poor. Is spending more money for public education to reduce class sizes to the current national average of 15.7 pupils per teacher (11.4 in Vermont) beneficial when in South Korea the average class size is 43 students and they rank first in math among 20 nations?

Jake’s money shouldn’t be viewed as a public asset. Government has a dangerously large appetite so he should demand better accountability and results to be sure his one dollar in four earned is wisely spent.

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Thank you for your calls and notes. I can be reached at 658-3975 (home), 1-800-322-5616 or 228-2228 (State House) and via e-mail.

Rep. Frank Mazur
South Burlington