Each week I read Dan Bongino’s commentary at Conservative Review, normally nodding my head in agreement to the point being made. This week’s is no exception, but the title of the piece led me to believe he was swerving into a point I have made for years. He began moving in the right direction when he wrote:
As small business owners, my wife and I do not have income taxes withheld from the money we earn. As many small business owners do, we have to periodically write checks to the state and federal governments for taxes owed. I mailed these tax payments this past week and, while writing out the checks and observing the amounts, I couldn’t believe how much money I had to pay to finance this out-of-control government. I cannot be the only one writing these substantial checks who feels this way.
Later in the piece he adds:
Income tax withholding has softened us. Many of us no longer have to go through the motions of actually picking up a pen and writing out a check to the government to pay our individual tax bills. We all owe it to ourselves to look at the amounts we are paying and to ask ourselves why we aren’t demanding better.
As far as that goes, I couldn’t agree more. But several years ago I penned a series of pieces which eventually became the kernel of a book I wrote. One of them dealt with taxation, and it was written about a year before we had the unsuccessful attempts to “stimulate” the economy through tax rebate checks. At that time I noted:
All right, so I get an $800 check. The feds want me to buy something in the hopes of goosing the economy. But a lot of people who are behind on their mortgage bills and credit cards will simply send that cash along to whomever they owe, which will help bail the banks and creditors out. It’s a similar argument to the one over the subprime mortgage bailout, which helps the creditors but doesn’t teach those who weren’t of enough sense to borrow within their means that they should consider their options more carefully.
And why is it that the federal government now reflexively hands out taxpayer money when the chips are down? They seem to have become the insurer of last resort for America.
If you really want to put money in the pockets of Americans right now, I have another suggestion for a short-term fix. How about suspending backup withholding for a few months? Since most Americans have their tax lives set up to get a hefty refund and “screw” the government (who’s actually screwing these people by receiving an interest-free loan from them) all that would do is make their eventual refund a little smaller. Furthermore, maybe if people actually had to write a check for the full amount due they’d understand just how much of a bite we all have taken from us.
So a little over seven years ago, before anyone outside the circle of the Secret Service had ever heard of Dan Bongino, I was on this track of discarding backup withholding. The onus should be on the government to collect rather than the taxpayer to get back what is rightfully theirs because it’s our money. On the whole, I still think dispensing with backup withholding is a wonderful idea short of adopting a national consumption tax like the FairTax (after the repeal of the Sixteenth Amendment, of course.)
Still, this is a good indication of how much Dan Bongino “gets it.” Whether he decides to run for Congress again, the Senate again, or waits until 2018 to pursue a state office, it’s clear he has a clear understanding of how the economy should work.