Happy Tax Day!

I thought this was an interesting tidbit: according to the Tax Policy Center in Washington DC, roughly 47% of U.S. households will have no federal income tax liability for 2009.

That is a huge percentage of the population with little or no “skin in the game.”  Imagine sitting at a poker table in Vegas, where half the players can bet wildly and recklessly because they’re not playing with their own money.  Worse: they’re playing with yours.

Federal income taxes pay help pay for national defense, education, and infrastructure — services that benefit everyone.  In theory, 100% of the people get a vote on how those dollars are spent, yet only 53% pay into the system.  For a country ostensibly committed to equal representation, I think this could be a dangerous policy in the long run.

Nearly half of the voters have no incentive to abandon inefficient, ineffective, and wasteful programs.  After all, they’re not paying for it.  And knowing they won’t foot the bill, they can approve shiny new expensive projects too.  Surf and turf?  Yes, please.  It’s dine-and-dash.

I believe a certain degree of “buy-in” is valuable in a democracy like ours.  It doesn’t have to be a lot, but at least something.  I think it would help reduce apathy and encourage smarter policy decisions.

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