You may have noticed I preferred the use of the term “death tax” when I posted about estate taxes. Because it is a tax looking upon death as a taxable event.
Here’s another term I prefer: “Bush tax rates”. They were tax cuts 9.5-years ago, when they cut the Clinton tax rates down. I am tired of them being referred to as tax cuts now, as if the higher Clinton rates were the natural level of taxes. No, if the rates go back up to the old Clintonian levels that’s a tax hike, not “letting tax cuts expire”.
“Payroll tax”. It’s just an income tax like all the rest. Sure looks like a tax on income to me. And the worst part of it is that half of it is hidden from the person being taxed [unless you're self-employed]. I wish all federal taxes that are applied on one’s paycheck were just rolled into one item, including any employer portion of that tax [ok, that part can be separate, to make the math easier to go from gross to net]. I hate hearing that half of people don’t pay income taxes, as that’s a lie — every wage-earner over a certain amount is paying income taxes, but they’re calling it payroll taxes. I hear there’s a deal to temporarily cut those, but we will see what passes. Unlike continuing current tax rates, it would be a real tax cut.
Finally, the evil “tax refund”. I prefer the term “you’re-getting-your-own-money-back-because-you-overpaid-during-the-yeat-and-if-you’re-happy-for-a-huge-refund-you’re-a-real-idiot”. Also, the only well-deserved boo hiss to Uncle Miltie for inventing tax withholding. To be fair, if he hadn’t invented it, some other bureaucrat would have.
A FAR SMARTER MAN ON THE SAME SUBJECT: Thomas Sowell on tax rhetoric