A physician's diagnosis of federal taxation in America

Thanks to efforts of the Tea Party movement, much attention has been paid lately to the question of federal taxation. Are Americans being taxed to death? Is the tax situation getting better or is it getting worse? Polemics aside, what are the actual facts?

To answer that question, a medical doctor volunteering at the Goshen Fair recently brought to his work station two old IRS 1040 manuals with tax tables for 1962 and 2003. He wanted to know how tax levels and rates under Bush-Obama today compare with tax levels and rates during the perceived “golden age� of Eisenhower-Kennedy five decades ago.

The results were charted on a large poster at the fair so curious passersby could assess the actual situation for different levels of taxable income — then and now. Without critical analysis or further editorial comment on my part, here are the doctor’s diagnosis, prognosis and prescription for U.S. taxpayers.

If you earned $12,000 of taxable income per year under the Eisenhower-Kennedy tax code, you paid $2,700 in tax, thus you paid at an effective tax rate of about 22.5 percent. By comparison, today if you earn $12,000 under the Bush-Obama tax code you pay only $1,200, or an effective tax rate of 10 percent. You save $1,500.

If you earned $52,000 under Eisenhower-Kennedy you paid $21,500 in tax, or an effective tax rate of 41 percent. Today you pay only $7,100, or an effective rate of about 13.5 percent. That’s one-third the tax. You save $14,400.

If you are among the fewer than 2 percent of Americans who have the good fortune to earn $300,000 a year, the situation is this: Under Eisenhower-Kennedy you paid $ 235,000, or an effective rate of 78 percent. Under Bush-Obama you pay only $85,000, or an effective rate of about 28 percent. Today you save $150,000. Not bad.

Or, are you among the “super wealthy�? If you earned still more in excess of $300,000, you would, of course, pay at still higher “marginal� rates on the excess. At what rates? In the golden years of Eisenhower-Kennedy you would have paid at the 91-percent marginal rate. Today under Bush-Obama you pay at only 35-percent marginal rate, a saving of 56 percent. Would you buy a Humvee or hire 30 more gardeners, or would you more likely just put the saving in the stock market?

President Obama has announced his tax plan to retain the Bush tax breaks for practically everyone, that is, the more than 98 percent of Americans who earn under $250,000 a year, and to provide significant tax breaks for small businesses. He would penalize corporations that send jobs abroad.

But he would let expire the tax breaks for persons earning over $250,000 a year, thus asking them to shoulder a greater share of the national tax burden. Is this too much to ask of the wealthiest 2 percent?

If you watch Fox News you are led to believe that if the Obama tax plan is adopted, the “average� tax increase for “all� Americans will somehow work out to 2 to 10 percent. How do they arrive at this alarming (but false) calculation?

They prorate the tax increase for the top 2 percent over the bottom 98 percent of taxpayers (who actually will see a reduction in their taxes) and, lo and behold, they come up with an “average� of 2 to 10 percent tax increase for “everyone.� Nice trick if you can swallow it! The facts and the math are totally incorrect.

In conclusion, if all you care about in November is your own tax liability, and if you earn over $250,000, then logically you should vote Republican. Otherwise, equally logically, you should vote Democratic. But if you are really more concerned about the economy, jobs, the environment, health care and war or peace, then maybe the tax issue should not be at the forefront of your decision making.

The physician’s taxation diagnosis is this: You are better off tax-wise than you might think. His prognosis: Things are getting better, not worse. His prescription: Stop worrying about your taxes. Start worrying about social justice.

Sharon resident Anthony Piel is a former director and general legal counsel of the World Health Organization.

Latest News

Sharon voters reject controversial school budget, 114-99

The May 8 town meeting and budget vote were moved from Sharon Town Hall to Sharon Center School to accommodate what officials said was the largest turnout for a Sharon budget meeting in recent years.

Alec Linden

SHARON – More than 200 residents packed the Sharon Center School gymnasium Friday, May 8, where voters narrowly rejected the Sharon Board of Education's proposed 2026-2027 spending plan by a vote of 114-99, sending the budget back to the Board of Finance after weeks of heated debate over school funding.

The rejected proposal – the ninth version of the budget since deliberations began months ago – carried a bottom line of $4,165,513 for the elementary school, unchanged from last year. The flat budget came after the BOF ordered the BOE in early April to remove nearly $70,000 from its spending plan.

Keep ReadingShow less

Liane McGhee

Liane McGhee
Liane McGhee
Liane McGhee

Liane McGhee, a woman defined by her strength of will, generosity, and unwavering devotion to her family, passed away leaving a legacy of love and cherished memories.

Born Liane Victoria Conklin on May 27, 1957, in Sharon, CT, she grew up on Fish Street in Millerton, a place that remained close to her heart throughout her life. A proud graduate of the Webutuck High School Class of 1975, Liane soon began the most significant chapter of her life when she married Bill McGhee on August 7, 1976. Together, they built a life centered on family and shared values.

Keep ReadingShow less
‘Women Laughing’ celebrates New Yorker cartoonists

Ten New Yorker cartoonists gather around a table in a scene from “Women Laughing.”

Eric Korenman

There is something deceptively simple about a New Yorker cartoon. A few lines, a handful of words — usually fewer than a dozen — and suddenly an entire worldview has been distilled into a single panel.

There is also something delightfully subversive about watching a room full of women sit around a table drawing them. Not necessarily because it seems unusual now — thankfully — but because “Women Laughing,” screening May 9 at The Moviehouse in Millerton, reminds us that for much of The New Yorker’s history, such a gathering would have been nearly impossible to imagine.

Keep ReadingShow less
google preferred source

Want more of our stories on Google? Click here to make us a Preferred Source.

By any other name: becoming Lena Hall

By any other name: becoming Lena Hall

In “Your Friends and Neighbors,” Lena Hall’s character is also a musician.

Courtesy Apple TV
At a certain point you stop asking who people want you to be and start figuring out who you already are.
Lena Hall

There is a moment in conversation with actress and musician Lena Hall when the question of identity lands with unusual force.

“Well,” she said, pausing to consider it, “who am I really?”

Keep ReadingShow less
Remembering Todd Snider at The Colonial Theatre

“A Love Letter to Handsome John” screens at The Colonial Theatre on May 8.

Provided

Fans of the late singer-songwriter Todd Snider will have a rare opportunity to gather in celebration of his life and music when “A Love Letter to Handsome John,” a documentary by Otis Gibbs, screens for one night only at The Colonial Theatre in North Canaan on Friday, May 8.

Presented by Wilder House Berkshires and The Colonial Theatre, the 54-minute film began as a tribute to Snider’s friend and mentor, folk legend John Prine. Instead, following Snider’s death last November at age 59, it became something more intimate: a portrait of the alt-country pioneer during the final year of his life.

Keep ReadingShow less
Sharon Playhouse debuts new logoahead of 2026 season

New Sharon Playhouse logo designed by Christina D’Angelo.

Provided

The Sharon Playhouse has unveiled a new brand identity for its 2026 season, reimagining its logo around the silhouette of the historic barn that has long defined the theater.

Sharon Playhouse leadership — Carl Andress, Megan Flanagan and Michael Baldwin — revealed the new logo and website ahead of the 2026 season. The change reflects leadership’s desire to embrace both the Playhouse’s history and future, capturing its nostalgia while reinventing its image.

Keep ReadingShow less
google preferred source

Want more of our stories on Google? Click here to make us a Preferred Source.

google preferred source

Want more of our stories on Google? Click here to make us a Preferred Source.