By Merrie Spaeth, KERA 90.1 commentator
Dallas, TX – With all the talk about war in Iraq, and the missiles and planes being shipped over, you may overlook the other war - over tax policy. And the weapon of choice? Words! What you call something affects how people perceive it, determining its success or failure.
This battle began in the last Congress. Conservatives - mostly Republicans but including a number of Democrats - changed the name of the "estate tax" to the "death tax." That name change persuaded Congress to vote to phase it out. Why? The public did not favor abolishing an "estate tax." "Estate" means polo ponies and servants - but they didn't think it was fair to tax what someone had saved over a lifetime. They didn't think it was fair to levy a tax on a business - like a dry-cleaning store - or a farm - when the owner died. The public thought the person who saved or built up a business had a right to pass it on to his, or her, kids. The new name changed public perception and the outcome of the political battle.
This year's debate is about how to tax income. In public policy terms, it's a debate over economic philosophy and power. Those arguments can get very complex. Free market economists believe individuals and businesses make the best decisions because they take risks and invest. That means lower taxes. The other end of the political spectrum favors government allocation of resources - which means higher taxes. I'm not going to delve into the economic or philosophic debate, but I am going to point out that both sides fight with words. The pro-government side calls the idea of lowering taxes "breaks" that benefit "the rich."
Now, a tax "break" implies the recipient is getting something undeserved. As in, "The cop stopped me for speeding but he gave me a break," meaning, "He didn't give me a ticket."
A Newsweek magazine poll found less than one percent of us believe we are "rich." So we are opposed to tax policies which only benefit the "rich" and we're perfectly happy to have the "rich" pay more taxes.
Complex language impedes debate. Reduce marginal tax rates? But nobody knows what that means. We understand these issues as they affect us, our neighbors, or someone we empathize with.
What I want our savvy KERA audience to do in the months ahead is look beyond the emotionally-charged words - to recognize they are designed to get you to stop thinking. As we talk about taxes on salary, dividends and other income, listen through the words.
My favorite ad slogan is the coat guy, Sy Simms, and daughter Marci, who's now running the business. They say "an educated consumer is our best customer." The same thing is true about taxes.
I'm Merrie Spaeth.
Merrie Spaeth is a communications consultant in Dallas.