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Economy

I pay, you pay, we all pay income tax

Yesterday was the last day to file taxes in the majority of the United States. The deadline is April 15th of each year, but this time an extra working day was given because the 15th fell on a Saturday, which is a non-working day for most of corporate America. Statistics are interesting, and in this case surprising that about 6% of American taxpayers (including legal as well as illegal aliens) request an extension of deadline. I never understood this, but I guess it just goes to show that people working in the hi-tech industries (bulk of taxpayers by my own account) are by and large procrastinators.

Now, while we are on the topic of statistics, let me mention that according to figures from the American Internal Revenue Service, about 44% of Americans are taxpayers. This is a great statistic simply because it takes the total population of the US in consideration along with the total number of taxpayers, while completely neglecting the number of undocumented aliens who file their taxes. This is because the IRS does not reveal these numbers to anyone. The IRS works on the premise that its main job is to get everyone in the US to pay taxes, not to enforce immigration laws.

An increasing number of such “undocumented” aliens are filing for taxes simply in the hopes of one day getting the “paper” making them a legal US citizen. This is a phenomenal thing. There’s lots of debate going on about granting these aliens legal status, and the fact that they pay their taxes makes a stronger case for them.

Another interesting fact is that the number of Americans filing a return with zero taxes due is also increasing rapidly every year. Does this mean that the economy isn’t growing at all? Does it mean that the number of poor people are increasing in the US? The answer to the second question is a “yes” from one of my earlier posts. Is the fact that an increasing number of Americans aren’t subject to any taxes at all an indicator of the tax law’s love for the middle class? I am baffled, and maybe someone can offer an explanation.

By the way, April 15th is also Leonardo Da Vinci’s birthday, the day Lincoln died, the day GE was incorporated, the day the Titanic sank, and the day that McDonald’s served its first hamburger! (wsj.com)

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