Communicating Effectively about Taxes
October 20132
Talking about Taxes
Our goal is to…..
help more Americans to
understand that taxes are the way we all help to support the public structures, systems and services that are essential to our democracy and our
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Default Thinking on
Taxes
The topic of taxes is highly charged in American discourse, and has
been since our founding. But today, it seems almost impossible to talk rationally and pragmatically about tax policy choices. Unraveling our rhetoric about taxes and creating a more reasoned appreciation of their role and purpose is an important aspect of changing attitudes toward government in general.
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“Legitimacy and a steady source of revenue provide the
twin foundations of any enduring government.”
- Marjorie E. Kornhauser
Despite Americans’ long history of protest over taxation, it is equally clear that the public structures we depend on today would not exist without our tax system. And our collective future is in jeopardy if we don’t have adequate and reliable revenues and public support for them.
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Taxes have
become
disconnected
from their
purposes.
Unfortunately, research shows that people do not generally think about all the things we rely on every day that taxes help to pay for. Even when they do recall them they take them for granted,assuming they will always be there and that any discussion about taxes must be for something “extra” or wasteful.
7 The disconnect between taxes and what they pay for manifests itself in many ways. In this example, protestors are bemoaning taxes while
Unfortunately, most
Americans view taxes as “taken money.” They are “theft” by the government that prevents individuals from paying for their own personal needs. This default perception is constantly reinforced by
typical media coverage and the anti-tax rhetoric that bombards us every day.
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“Consumer
Thinking”
Fuels a sense that taxes are subtractive. When people view
government as a vending
machine of services “bought,” the core questions are not civic ones
but rather “what’s in it for me?” and “what is it going to cost?”
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Recommendations for
Changing the
First, reconnect taxes to their purposes by
focusing on the public structures they fund.
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Reconnect Taxes to Purpose
The public structures that underpin our
communities
– such as schools, roads, clinics,
police and fire protection, and health inspections –
all depend on a system of budgets and taxes that
supports them adequately now and into the
future.
Taxes are an essential part of the equation;
how they are raised and the level of resources they
provide
will affect our quality of life now and into
the future.
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Next, reset the context.
Debates about taxes are often lodged in zero-sum arguments about costs and benefits in the current moment. Reset the context by focusing on the role taxes play in helping us meet future goals and objectives and reminding us that previous
generations paid taxes to construct the many public benefits we enjoy today.
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Example of resetting the context
“On Tax Day, millions of Americans will do what
generations before have done –
contribute to our country's
future.
Just as our parents and grandparents paid taxes to
build the schools, transportation systems, health clinics and
parks we benefit from today, our tax payments this year
continue this effective system of
forward exchange.”*
* See a description of the “forward exchange” concept at:
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Too much of our
language about taxes
infers that they are a
burden from which we
should be seeking
relief. Even the term
“taxpayer” reduces our
role to check-writer.
Avoid terms like:
• Tax Burden
• Tax Relief
• Hard-earned tax dollars
• Taxpayer
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Taxes are
Loads
to be shared
not
Burdens
to avoid
We all have to carry
our share of the
“load” when it
comes to paying for
the things we all
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People struggle
with notions of tax “fairness”
Fairness is a basic American value, but when it comes to taxes
“fairness is in the eye of the beholder.” Moreover, people often think that the simplest proposals are the most fair, e.g. flat income taxes or consumption taxes. It is sometimes difficult for people to see how a “progressive” tax system – one that expects the most from those who have the most – is the best design.
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Fairness = Not Taxing Me
As Russell B. Long famously
said,
“
Don't
tax you,
don't tax
me
, tax that fellow behind the
tree
!“
Relying
only
on arguments
about fairness may generate a
willingness to tax others (e.g.
the wealthy, corporations) but
it may not help change overall
attitudes about taxation.
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Why
should the wealthy and
corporations pay “their fair share?”
Efforts to focus on
those who should pay
more – such as the
wealthy and
corporations
– still
need to make a
practical case for
“why.”
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An example of “why” some should pay
more
The public systems that our taxes support are the foundation of our nation’s economy. Everyone – individuals and businesses alike –
needs to shoulder an appropriate share of these costs. Our nation was built on the notion that those who have benefitted the most from our country’s public investments should also pay the most for their
upkeep. For some time now this basic principle has been eroding away. Over recent decades the share of taxes paid by high income earners and large corporations has been reduced while middle class families have paid more and our public systems have declined. This great American tax shift is undermining the foundations our economy and our society.
We cannot just
tell a
morality
tale;
we also
need a story of a
tax system
that
is upside down
and needs to be
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Tips for fairness conversations
•
Take a
practical, management stance
(what is the best
tax structure to run a modern society).
•
Make it about a
tax “structure”
or
“system”
that needs to
be changed not just “greedy people and corporations.”
•
Try using terms like
“upside down,”
or
“out of balance,”
instead of “unfair.”
•
Find ways to turn attention to the investments in
public
systems & structures that make wealth and economic
success possible.
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Summary of Recommendations
• Connect taxes to their purposes
• Elevate civic thinking not consumerism
• Reset the context and perspective
• Avoid triggering bad tax frames
• Make a practical case for fairness
For more information about talking about taxes, we encourage you to visit www.publicworks.org.
