Death and Taxes

Since today is April 15th, the deadline for tax submissions let’s start with a quote from Benjamin Franklin who said, "The only two certainties in life are death and taxes," a phrase we've all heard and know to be profoundly true. Reflecting on this, even someone as liberal as John Maynard Keynes, who acknowledged the government's need to tax for increased expenditure, admitted that "the power to tax is the power to destroy." This is a crucial reminder of the balance needed in tax policy.

Now, let’s talk about tax burdens across various states. A recent survey indicated that New York residents face the highest tax rate at almost 16% of their income going to various taxes, including property, sales, and income tax. On the opposite end, Alaska enjoys the lowest tax rate due to the absence of a state sales tax or income tax. Texas ranks sixth, which is relatively moderate, but California finds itself 13th from the bottom, plagued by high taxes.

It's a misconception that the wealthy do not contribute their fair share. In fact, the latest complete tax returns from 2021 show the top 1% of earners paid 42% of all income tax, with the top 5% and top 10% paying 62% and 73% respectively. Meanwhile, the bottom 50% only contributed 2% of the total income tax. This progressive tax structure shows a clear fiscal strategy aimed at redistributing economic responsibility.

On the subject of the O.J. Simpson trial, it was a vivid example of a national spectacle that deeply engaged the American public. I remember exactly where I was—landing at DFW, returning from an OPEC meeting in Vienna. The airport was abuzz, crowds glued to the television as the news broke that O.J. Simpson was accused of murder. It was a moment that encapsulated the racial and media-driven divides of America. This trial, and the jury’s eventual verdict, not only highlighted deep-seated societal issues but also showcased the profound influence of media on public opinion.

On a lighter note, one time when I was running against George W. Bush. During a marathon, to inject some humor and competitive spirit into the campaign, we hired a Texas Tech cross-country runner to stay just ahead of Bush, wearing a T-shirt that playfully declared "Kent Hance is ahead." Years later, during a dinner at the White House, President Bush and I reminisced about this incident, laughing over the creativity and rivalry of those campaign days. It underscored how, despite our intense competition during the campaign, political adversaries can come to appreciate the shared memories and even form friendships post-campaign.