What鈥檚 so funny about taxes, love, and solidarity?
A couple of weeks ago I donated six cases of聽. I鈥檓 not alone. In an outpouring of love and solidarity for a city that鈥檚 been stuck with poisoned tap water for two years,聽听补苍诲听聽from across the country have donated millions of bottles of water in the past month.
But Flint needs more than clean drinking water.聽. A lot of cash. Governor Rick Snyder just sent $28 million in state funds to the city, and President Obama sent $80 million in federal funds. But according to Snyder, it will take $767,419,500 just to replace Flint鈥檚 water system.
Would Americans pay higher taxes with as much love and solidarity for the people of Flint as they donate water? And would my fellow Michigan neighbors pay up, given that聽聽and representatives聽?
We know that聽. According to the Charities Aid Foundation, in 2014 the United States shared the top spot (with, believe it or not, Myanmar) on the World Giving Index. The index measures three key behaviors: helping a stranger, volunteering time, and donating money.
We also know that Americans carry a relatively light personal tax burden. We might feel like we are overtaxed, but compared to other leading economies in the聽, we are not. The average personal federal and subnational income tax burden, including Social Security, is 31.5 percent in the United States. The average German鈥檚 burden is 49.3 percent, an average French taxpayer pays 48.4 percent, and Swedes pay an average rate of 42.5 percent.
Of course, those European neighbors get a lot in return compared to Americans. For example, Germany offers聽. France offers聽. Sweden offers both聽聽as well as child care and help with housing.
Yet, those same countries ranked well down the World Giving Index. Germany ranked 28th, Sweden 40th , and France was 90th . Maybe they鈥檙e less willing to give to charity because they know their governments take care of them, and those less fortunate rather well. Or perhaps it鈥檚 because they have less discretionary money left over after paying those high taxes.
Americans, by contrast, believe that charities are better at solving social problems than government. In 2015 the聽1,000 American聽likely voters 鈥淲ould your first choice for solving a social problem in America be to use government or to use philanthropic aid?鈥� Close to half, or 47 percent, chose philanthropy. Only 32 percent chose government. That same survey found that 43 percent of Americans鈥攊rrespective of political affiliation鈥攖rusted nonprofit agencies to address pressing social issues, while only 14 percent trusted government to do the job.
The thing is, some problems are too big for nonprofits and charitable giving to solve. Sometimes聽鈥攅ven, in Michigan's case, a poorly managed one鈥攖o do what the nonprofit sector can鈥檛.
Thankfully, Americans are fine with paying taxes鈥攐r at least they believe everybody聽should聽pay taxes. An IRS Oversight Board survey finds that over 95 percent of Americans聽聽that 鈥淚t is every American鈥檚 civic duty to pay their fair share of taxes.鈥� More than half see taxpaying as 鈥渧ery patriotic.鈥�
Maybe聽taxpayers would pay a bit more in taxes to help Flint. Unfortunately, taxpayers鈥攊ncluding me鈥攁re painfully aware of how聽聽have been. I want to help Flint鈥檚 residents, but I鈥檓 not especially keen on paying higher taxes to the state and聽聽that caused the disaster. I鈥檓 certainly not alone.
Suppose Governor Snyder ultimately recommends that Michigan taxpayers pay a slightly higher personal income tax rate in order to help not only Flint, but other cities in need of improved infrastructure鈥�. Michigan鈥檚 personal income tax rate is 4.25 percent, the twelfth lowest among states with income taxes. Maybe taxpayers would be okay with an increase. I think I might be, though I'd be wary.
But mostly, I鈥檓 weary: Even if taxpayers were on board, Snyder鈥檚 not likely to push a tax hike. The state has an聽聽this year of $575 million, thanks in part to higher-than-expected state income tax collections. Michigan鈥檚 budget director John Roberts says that any share of the one-time surplus would likely be used to address Flint鈥檚 immediate needs, not its aging infrastructure鈥斅燽ecause state-controlled Flint didn't treat the water correctly.
It鈥檚 not often that tax policy brings a song to mind, but in this case, I hear聽:
鈥淪o where are the strong? And who are the trusted? And where is the harmony?鈥�
And鈥� solidarity.
This article first appeared at .
