Recently, Third Way released an idea brief suggesting something very simple: A Taxpayer Receipt, a simple itemized accounting of what programs your hard-earned tax dollars go to fund. Ethan Porter, writing in Democracy, had the same suggestion earlier this year. This is a genius idea.
To most taxpaying citizens, government is big, sprawling, and impenetrable. Few have a good idea of where their money goes and what kinds of programs it funds. Absent any acknowledgment of where the money goes, it’s not such a stretch to see how some people could start to think of taxes as theft or servitude.
At a basic level, the current system is bad customer relations. Rather than treating taxpayers as valued citizens who deserve to know what they are getting for their money, federal tax collectors simply take Americans for granted. Not even a simple “thank you, your generous contributions makes it possible to preserve the dignity of our aging population, fight wars on two continents, make education affordable, and keep our environment clean.”
Of course, a simple accounting receipt surely wouldn’t put an end to the anti-government hysteria plaguing the country overnight.
But it might lead to a more informed conversation about the size of government. At the very least, conservatives who support our troops might feel better to get a receipt from the government letting them know that almost half of the income taxes that they pay are, in fact, going to support our troops. Would they be so eager to cut taxes if it also meant cutting our military?
This also could be a way for the federal government to make some inroads at restoring legitimacy. Only one in four Americans say they trust the government to do what is right most or all of the time. Maybe this is because the government has never taken the time to explain what it does in a simple, concise, understandable way.
The receipt could also provide customized district-by-district profile of how federal money is spent locally to show people very tangibly what they are getting for their money. Many conservatives might be surprised to learn that more federal money generally goes to red states than blue states. And members of Congress would surely be very happy to share this information with voters to let them know what they are doing for them (and why they should be re-elected).
Porter also suggested giving each citizen a small discretionary amount of their tax money to allocate as they see fit. He proposed $1,000. I would argue for maybe 0.5 percent of an individual’s tax return. But regardless, I think it’s important because it’s a chance to 1) give taxpaying citizens a sense of ownership over their country; and 2) alert the policymakers to what individuals’ spending priorities are.
If certain programs do poorly in garnering citizen funding votes, supporters of those programs might be on alert that they need to do a better job of justifying why such programs are valuable. It could also stimulate a meaningful discussion of what our national funding priorities should be, as different groups would surely begin campaigning and lobbying more publicly for their favorite priorities.
But the big point here is the federal government does a very poor job of communicating what it does, and how it spends taxpayer money. Here is an opportunity. Let citizen-taxpayers know they are valued contributors, tell them what they are getting, and let their voice count. Then see what happens. Things could hardly get worse.
