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What Taxes Would Look Like if Normal People Called the Shots

Changes already popular with Americans could make us healthier, wiser, and less indebted.

| Thu Apr. 11, 2013 5:23 PM EDT

This story first appeared on the TomDispatch website.

After heroic feats of arithmetic and a your-guess-is-as-good-as-mine interpretation of opaque rules and guidelines, millions of Americans will file their taxes by this Monday, April 15th.

Then there's the bad news.

For anyone who takes a peek at where his or her income tax dollars are going, Tax Day can be maddening. Outsized chunks of our taxes fund the military, rising healthcare costs, and interest on the federal debt. Comparatively tiny amounts go to education, science, alternative energy, and the environment.

Category by category, this is contrary to what Americans want—and what we the people want is pretty clear. Despite near-constant news about how polarized our nation is, a careful look at opinion polls indicates that a strong majority of Americans actually have a coherent to-do list for Washington: we want more jobs, smaller deficits, more education funding, reduced reliance on fossil fuels, higher taxes on the wealthiest, plus—the kicker—Medicare and Social Security benefits preserved. You know, it's the typical story of wanting to have our cake and gobble it down, too. Right?

Wrong. What's virtually unacknowledged is that all these things could be done at once. Far from being an impossible set of demands, the collective opinion poll version of the wisdom of the American people is, in fact, a smart set of solutions—or at least it would be, if we had a government capable of following our wishes. That collective wish list would address most of this nation's urgent challenges, while making us smarter, safer, healthier, less indebted, and better invested in our long-term future. Here's how.

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First—no shocker—it's the economy. According to a recent Gallup poll consistent with previous findings on this issue, 99% of Americans want job creation bolstered. Lawmakers only have so many options when it comes to directly affecting job growth, and one of the quicker ways is to invest in repairing our crumbling infrastructure, currently rated D+ by the American Society of Civil Engineers. Such repairs would require substantial new spending in the near term, which would seem to conflict with another top priority of Americans: 92% say cutting spending and reducing deficits are also important. But we can invest in jobs and infrastructure and make this money back many times over just by doing the other things Americans support.

First, though, let's toss in another issue that comes in high on American priority lists: expanding education funding. Critics say that support for more education spending shrivels when proponents are threatened with higher taxes on the middle class. But there's no need to hike middle-class taxes; we can raise taxes only in ways favored by a majority of Americans. Do that and you could fund pre-kindergarten to research-university public education in the style that around 60% of taxpayers consistently support, and with money left over.

Case in point: a strong majority (73%) of Americans want to reduce our reliance on oil, gas, and coal, while a narrower 50% want action on climate change. A carbon tax addresses both issues by making innovation in alternative energy attractive, while reducing carbon output. Championed by economists across the ideological spectrum, such a tax has the added benefit of raising an estimated $125 billion annually with a tax of $25 per ton of carbon dioxide. Some of that money could be used to offset higher energy prices for low-income Americans and the rest for those generous increases in education funding.

We can similarly resolve this country's long-term budget woes just by acting in ways the public is clamoring for.

Polls show that Americans want less government spending and smaller deficits. To be clear, this issue has been the subject of significant fear mongering and little sound information. Deficits are not an immediate problem, as even House Speaker John Boehner recently acknowledged, since at the moment lenders are basically paying Uncle Sam to take their money. But deficits could become a problem down the road when interest rates rise. The key is to reduce deficits before that happens, so interest on the federal debt doesn't eat up far more of our tax dollars.

There are few specific federal budget items that a majority of Americans agree should be cut. But according to Gallup, 58% of us favor "major cuts in military and defense spending." Ask the question in more detail and you'll find that the average American wants an 18% reduction in the Pentagon's budget. That can be done without compromising national security because we currently spend extraordinary sums on a force structure tailored to the Cold War and throngs of outdated or wasteful weapons systems—like the problem-ridden, historically over-budget F-35 Joint Strike Fighter that has already drained $84 billion from the US Treasury, and is projected to cost $1.5 trillion over its lifetime.

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