Morning Bell: How Tax Day Became Payday

Curtis Dubay /

1040 Form

For just over half of all Americans today is Tax Day. But for the other half it is just another day on the calendar. That’s because they pay no federal income taxes. The old saying goes “you can’t get something for nothing.” But these “non-payers” receive government services and benefits without chipping in.

If more taxpayers continue to drop off the tax rolls, we will soon pass the dangerous tipping point where more than half of taxpayers are non-payers. The individual income tax is the main revenue raiser for federal government. Passing the point where less than half of taxpayers pay it would mean a majority of voters could vote themselves more and more government benefits without incurring any of the costs. In this unstable situation, politicians would have no incentive to restrain government spending since they could garner more votes by increasing it. That is a deadly recipe for never-ending increases in government spending that will inevitably lead to fiscal implosion when there are no longer enough productive taxpayers to foot the bill for the expanding state. (more…)