Tax forms

Taxes and the social contract

I’ve been preparing tax returns since my first regular job out of high school. I was a volunteer tax preparer in college and worked for a few years as a bookkeeper for a CPA. I know my way around a 1040. More importantly, I understand the contract I’m making with my government. If I’m going to give them my hard-earned money, there are several things I expect from them in return:

  • My tax money will be spent wisely to benefit my country, state, and community.
  • I have a say in how my tax money will be spent.
  • My confidential information will be kept secure by the tax agencies where I file my returns.

We all know the consequences if we don’t hold up our part of the contract. Even the Joker in the Batman animated series knows.

Joker: I'm crazy enough to take on Batman, but the IRS? No, thank you!

But what if the government doesn’t hold up their part of the contract?

I want my tax money to help my country, state, and community, even if I don’t directly benefit. I’m fine to see some of my tax dollars used to maintain Interstate 35 in Norman, Oklahoma. I may never go there, but I’m happy my fellow citizens are benefiting.  What I find unacceptable is to see my taxpayer money used to line the pockets of oligarchs who don’t need or deserve it. If I wanted to give my money to Elon Musk, I would have bought a Tesla.

Even worse is paying for a service for decades and not use it. I’ve been paying for Social Security and Medicare for 45 years. When I’m ready to retire, I don’t want the government to say, “Sorry. We defunded those programs. Get back to work!” There’s a word for when someone has you pay for something they have no intention to deliver. It’s called fraud.

That’s why it’s important for us as citizens to have a voice in how our taxpayer money is used. Everyone has an opinion on how our taxes should be spent. Fortunately, we have elected representatives and a legislative branch to hash these disagreements out. That’s why the Constitution gives the House and Senate the “power of the purse.” It’s designed to avoid the “no taxation without representation” problem that caused the American Revolution in the first place. (Although the folks in DC, Puerto Rico, and the territories feel differently.)

What happens when the President decides he can override Congress with executive orders? He can defund entire agencies and lay off tens of thousands of workers with a stroke of a pen? And Congress just sits back and does nothing? Even though his party holds the majority in both houses, do they really want to surrender their power to him?

And why are we allowing a bunch of script kiddies unfettered access to our personal information? Think of all the data we provide to the IRS: Social Security numbers, employer information, income, bank and investment account numbers. Do you think a bunch of teenagers and twenty-somethings would be content just using that information for an “audit”? My first experience with identity theft happened over 20 years ago when an employee at a car dealership used my information to have himself a great time in Las Vegas. Think of what devastation they can cause not just to our personal finances, but to our entire banking and credit system.

Two and a half centuries ago, we had a revolution because we felt a king imposed taxes on us without our consent and with no oversight on how that money was used. Did we go from dumping tea in a harbor to sitting on our sofas and doomscrolling? Fortunately, there are people standing up and speaking out. But we need more of us to raise our voices until we make them hear.

As you fill out your 1040 this year, ask yourself if the government is fulfilling its part of the social contract. If not, it’s time for you to join us in speaking out.