Tax Day: Is your money being spent wisely and well

Just how long do you have to work this year to meet your tax obligations to federal, state and local government?

It takes Americans an average of more than 100 days to achieve "tax freedom," the day when you finally have discharged your tax obligations and are able to keep some of the money you earn for yourself and your family. This year, Tax Freedom Day in Missouri landed on April 7th.

That's according to the Tax Foundation, a non-partisan research organization in Washington, D.C., that studies fiscal policy. Each year, the Tax Foundation calculates how much Americans pay in federal, state and local taxes and then uses that calculation to determine how long Americans have to work just to pay their tax burdens.

You will not be surprised to learn that Tax Freedom Day, over time, falls later and later on the calendar. In 1930, Americans earned their tax freedom as early as February 12; since then, the target date has crept deeper and deeper into March and April, and in at least one year (2000), as late as May 1. (In recent years, Tax Freedom Day has shifted a few days or weeks earlier or later, depending on broader economic circumstances.)

So you know how much you pay in taxes and how long it takes you to meet your annual tax obligation. The next question is, are you sure the money you're sending to Washington is being spent wisely and well? A glance at the federal spending picture does not inspire confidence in how our taxpayer dollars are handled.

Consider two of the most frequently cited numbers related to the federal budget: the national debt and the federal budget deficit. Right now, the national debt checks in at a staggering $15.6 trillion. Meanwhile, the federal budget deficit for this fiscal year is projected at $1.2 trillion, according to the nonpartisan Congressional Budget Office.

Think President Obama's budget for the next fiscal year will cut those numbers down to size? Guess again. At best, the president's budget would slow the rate of spending growth in a few areas, while allowing for continuously mounting debt for years to come.

The Obama administration's record on deficit spending has been abysmal, but we can't lay all the blame at his feet. In recent years, both parties have shown a lamentable unwillingness to grapple with the urgent need to get federal spending under control. When you consider that most of the growth in the federal budget is found in four categories--defense, Social Security, Medicare and Medicaid--you recognize that those are the areas where Washington leaders are most hesitant to restrain spending.

The fact is, our current level of spending is unsustainable, and many Americans rightly fear runaway government spending does more to hurt than to help the economy. Recent polling conducted by Public Notice, the organization I lead, found a solid majority of 56 percent of respondents believe that the federal government's size and spending addiction are hurting economic growth. Moreover, a full two-thirds expressed concerns about the size of the national debt and its impact on the economy.

These taxpayers would likely be reassured by a strong commitment from Washington, whether led by Republicans or Democrats, to get federal spending under control.

Some people argue, quoting the great Supreme Court Justice Oliver Wendell Holmes, that "taxes are the price we pay for civilization." That may be true, but it sidesteps the essential question of how taxes are to be balanced against spending, and how taxpayers can have a reasonable expectation that the money they send to the government will be spent judiciously.

After all, most Americans don't like paying taxes, but they understand the government needs revenue to provide essential services.

They recognize that taxes fund the paving of highways, the public education system and the court system that administers justice. Taxes pay the salaries for the firefighters and police officers who keep our communities safe, and for the men and women of the U.S. military who stand ready to protect our nation. Few taxpayers object to government spending that is reasonable and supports the common good.

But Americans are also growing increasingly aware of the gap between these essential services and the vast amounts of pork barrel, wasteful, fraudulent and duplicative spending that characterizes too much of the government's budget. Tax Freedom Day is an excellent time to draw attention to this fact and to remind taxpayers that they should expect better from their elected officials.

Gretchen Hamel is Executive Director of Public Notice, an independent, nonpartisan, non-profit dedicated to providing facts and insight on the economy and how government policy affects Americans' financial well-being.