April 15, 2008
Tax Day

Today is Tax Day, the deadline for you to turn in your federal Income Tax statements. Or for some this is the first in series of deadlines where you can ask for an extension...

If you filed your taxes early then congratulations. And if you are one of the millions of Americans who have procrastinated to this point and are still hurriedly gathering receipts and scribbling away on forms there is a bright side. You might be one of the many man-on-the-street interviews as you stand in line at the post office that local television reporters use to lazily fill up a few minutes of airtime today.

For the sake of humor and nostalgia here is a 1942 propaganda film put out by Walt Disney Studios called "The Spirit of 43" about the subject.

As an amateur historian it is kind of fun to watch old films. They serve as a time capsule for pop culture reflecting the attitudes of the times. A couple of things went through my mind after watching this particular short.

First off, Hollywood and Disney would never put out a patriotic piece like this today. Being pro-American and displaying just a bit of jingoism isn't cool. Real artists don't wave the flag. Or at least they haven't since the late-1960s.

Yes this cartoon is delightfully cheesy and a bit over-the-top but is the altruistic notion that you should sacrifice something of yourself in order to protect the freedom of speech - and to worship - a bad morality tale?

If situations were reversed one has the hunch that you would have filmmakers today blaming the United States for the December 7 attacks saying the country deserved it for having troops on foreign soil in the Philippines. It was wrong for politicians to levy a crippling embargo against the Empire of Japan. There should be no blood spilled for oil (The main war aim for Japan in World War II was to secure the oil fields of Dutch Indonesia). Finally what is the United States doing diverting 90 percent of its war effort to Europe against Germany when it was aircraft from the Japanese Imperial Navy that sunk seven American battleships at Pearl Harbor?

The other thought was to marvel at the line delivered a minute into the film.

"This year - thanks to Hitler and Hirohito - taxes are higher than ever before".

That was in 1942 and total tax receipts represented 10.1 percent of the GDP. That was after one year of war. In 1943 it was 13.3 percent. In 1944 at the height of the United States military effort it was 20.9 percent and in 1945 it was 20.4 percent.

So with 15 million men and women in uniform and after building the Manhattan Project, thousands of warships, bombers, fighter planes, tanks, jeeps and millions of tons of ammunition and supplies; with an entire nation on a war footing fighting all of Nazi-occupied Europe and Japan in the Pacific and loaning billions of dollars worth of material to the British Empire and the Soviet Union, the highest percentage of taxes levied on the American people was one-fifth of the national GDP.

Tax receipts in 2000 represented 20.9 percent of the GDP.

In 1999 and 1998 it was 20 percent. In 2003 and 2004 those figures had dropped to 16.5 and 16.3 percent. And last year in 2007 they crept back to 18.8 percent. (All these numbers - if one reads the figures correctly - do include the deficit)

What is Congress and the federal government spending our money on? Last year's budget was around $2.9 trillion. In 2009 the number is projected to be $3.1 trillion. In 2001 it was $2 trillion.

And don't say "the military" or "The Iraq War" because last year the Department of Defense received $481 billion and the "Global War on Terror" cost just $145 billion. Combine the two and it represents only 21 percent of the budget.

During the Cold War the percentage of defense spending was far higher than it is today.

So in 1942 it was Chancellor Hitler and Emperor Hirohito who were the ones responsible for the highest taxes in history. Would be nice to know who is responsible for the out-of-control spending now.

The question of who is a "Thrifty" or a "Spendthrift" should be one of the main things on voters' minds in November.

Posted by DonWard at April 15, 2008 11:16 AM | Email This
Comments
1. Who is at lease partially responsible you ask? I'll tell you WHO, and he is likely somewhere far away hidden possibly in a cave, literally laughing his ass off: Osama Bin Laden, that's who. [...and all because of 19 of his deciples with box-cutters] and of course our POTUS with the cowboy mentality. Very sad indeed!

DW - How does this statement jive with those 1998, 1999, and 2000 numbers Duffman? Think harder. Not when ALL defense spending represents around 20 percent of the budget.

Posted by: Duffman on April 15, 2008 01:36 PM
2. Who stands in line at the post office anymore? I file electonically, my refund check is sent directly to my bank. Badda bing badda boom.

The tax man isn't getting my return until 11:58 tonight!

Posted by: pbj on April 15, 2008 01:41 PM
3. #2 Sounds fast pbj, I file mine the old fashioned way, 'electronically'. :)

Posted by: Duffman on April 15, 2008 01:45 PM
4. I envy old Donald there. Having to save some money to pay his taxes. Today the tax man takes his money first and leaves me whatever is left.

Posted by: RBW on April 15, 2008 02:41 PM
5. Mailed mine today. (with an extension) Ouch. And ouch!

Posted by: Michele on April 15, 2008 03:21 PM
6. The list of those responsible is pretty long, but truth be told, most of our tax dollars are now going to entitlement programs and debt servicing.

What's also interesting is who's paying....here's a couple of interesting links:

http://money.cnn.com/2008/03/31/news/economy/tax_debate.fortune/

http://online.wsj.com/article/SB119786208643933077.html

Well worth the read.

Posted by: Seattle on April 15, 2008 03:24 PM
7. I am still holding out hope that I find some more receipts. I clean the car's glove compartment next!

Posted by: AP on April 15, 2008 03:34 PM
8. The tax man isn't getting my return until 11:58 tonight!

I'm going to assume your getting a refund there PBJ since your check is sent to your bank.

This seems a rather inept strategy. The average person (being you) would likely earn more interest from a bank than the having the Federal Govt. hold on to your money till April 15th.

Your strategy seems to backfire as the Federal Govt. will continue to earn interest on the money you don't collect. Nice job, dumbass!

Posted by: Yo Dumbo! on April 15, 2008 03:48 PM
9. Very good and informative analysis.

I'd love to see the same thing for the State of Washington. State and local taxation has been where much of the increasing tax burden (as a % of GDP) has come from since WW II.

Posted by: BananaLand on April 15, 2008 04:20 PM
10. Don:

I wonder if Hollywood and Disney were willing to make this kind of propaganda to support the government and tax structure in 1943, because we were at war with a real enemy, who had threatened us and actually attacked our territory. There was little debate as to what it was we were trying to accomplish. And we felt we were being led by a government that was both competent and honest with us.

Today, we’re in a war that we started, laboring under bad information from our own leaders, and faced with a constant stream of additional information of their corruption and incompetence. In addition, we now know that our own government not only knowingly lied to us, but approved of torture of those suspected of having useful information.

Yes, the circumstances are very different. But let me say this anyway. I am still proud to pay my taxes. Because I know I am a citizen of a great nation, a nation capable of doing great things, as we have done in the past. We are also a nation that will do great things in the future once we rid ourselves of the current leadership and return to our better instincts.

Thanks for listening….

Posted by: Unkl Witz on April 15, 2008 05:48 PM
11. Tax cuts NOW!

Posted by: Michele on April 15, 2008 07:14 PM
12. It's hard to feel patriotic about paying taxes when it's used for so little that is actually constitutional.

Posted by: Andrew Brown on April 15, 2008 08:26 PM
13. If all taxpayers had to mail in a check quarterly
like self employed people do instead of the
companies they work for having to do it for them,
there would be NO SUCH THING as the democrat
party. Its a whole new world when the tax bill
comes. People have no concept of the money
or the amount because they never see it, oh they
look at their stub and grumble but they still
don't have to come up with it. I know a guy
who always voted democrat and then struck out on
his ownabout 3 years ago as a spec builder.
After living with the beauracracy and fighting
with the permit process and all the various
taxing bodies and stormwater runoff regulations
(976 pages of text for a little silt)etc, etc.
I think he said there are 18 different permits
needed for one home. So retarded, and yet in
some cases it can take not months but years just
to jump through the hoops set up by our fine
liberal anti growth friends (for a permit). Anyhow, nothing like hands on experience to open up the eyes. I very much doubt Gregoire will
be on this years ballot for our new young republican voter.

Posted by: mark on April 15, 2008 11:27 PM
14. One recommendation for our State Congressional Delegation and Senators, now that we can again deduct Sales Tax, the next thing you should have added to deductions is the State's Real Estate Excise Tax, which isn't deductable. Feel free to limit the deduction to the same rules that the sale capital gains abide by (i.e., allow exemption for sales every two years).

If they can't get it approved, at least chide the IRS to specifically spell it out in the instructions, instead of force tax payers to guess, or wait on line for an hour plus and then wait two weeks for an official response. (OBTW, the official response points to Federal Code 26, IRS section, section 164(a)(5), which states that any tax related to sale of real estate not specified in previous paragraphs, i.e., property tax, is not deductible, but can be use to offset the basis gain for the home).

Of course, the ultimate luxury would be to do away with this tax at the state level, but I kind of doubt that will happen. The counties and cities get a lot of income here to fund infrastructure improvements, like sewer and streets. Of course, maybe Tim Eyman will take notice and launch an initiative to repeal this tax.

Posted by: tc on April 16, 2008 08:36 AM
15. Mark@13:

Hear, hear! I've been saying for years--since I was a self-employed small business owner who had to pay Quarterly Estimated taxes--the the single best thing we could do is ELIMINATE WITHOLDING. When YOU have to sit down and write the check, all of a sudden the goodies and "freebies" don't seem so great.

And just to make sure all the lefties know: there is ABSOLUTELY NOTHING stopping YOU from paying more taxes if you feel you're not paying enough. Get out that checkbook and put your money where your mouth is.

Posted by: richard on April 16, 2008 01:50 PM
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