I pay a lot of Federal Income Tax - It's Ok

With the recent presidential election and the upcoming fiscal cliff (thank you to Federal Reserve Chairman Bernanke for using my name in such a negative manner), our country is discussing the federal deficit and the fairness of federal tax code.  We all agree that action needs to be taken to address our large federal deficit, but what constitutes a equitable and fair combination of taxes and spending cuts is hotly debated.

Over my working career, I have gone from someone who barely pays federal taxes to someone who today could complain about "how much the government takes from my pay".  Over the last couple weeks, however, I have seen three examples of where my tax money goes.

When hurricane Sandy hit the east coast, our federal government instantly sent needed aid.  From the National Guard to emergency supplies, my tax dollars helped those in need.  It is nice to know that if my family suffers the same fate, our federal government will do the same for Michigan.

Roger and Mimi have a very dear friend and her son recently died.  He was a commander of a nuclear submarine and was stationed in Hawaii.  He left behind his wife and young daughter.  The military paid to fly all the family members to Hawaii for the funeral and stay two nights in a hotel.  I am glad my tax money supports our military and those who currently serve our country.

Finally, I had a new client come in to complete a retirement plan.  The man recently retired and had served in the Army for ten years including several years in Vietnam.  He had difficulty walking and explained to me how he was injured during the war.  He receives extra money each month in his military pension due to his wartime injury.  I never served in the military, but I am more than willing to pay some extra taxes to support those who did.

I completely understand that the federal government should be much more efficient and that our tax code should be simpler.  But to solve the large deficit we currently face in our country,  we need a combination of spending cuts and increased revenue.  Cuts to student loans, foreign aid, food stamps, etc. alone will not balance our budget.  Tough decisions will need to be made regarding social security, medicare and the military.  Fairness would dictate that if is easier for me to pay a little more that it is for Popi or my Mom and Dad to receive less.  If the choice is between cutting out the support in the examples above or for me to pay more taxes,  I am happy to chip in some more.