"Something's Gotta Be Done About Your Kids, Marty"

Quick...what's the movie?
Actually, this is not about kids. This is about taxes.
Last year we were "blessed" with a double salary. Not because anyone began earning a bigger or another salary, but because, after 28 years, Motorola decided that "due to business conditions, etc," John wouldn't be working for them anymore. The severance package was decent; one years' salary, medical insurance and full retirement benefits.
BUT...There's always a but.
The taxes are killer. Although we have already paid a large chunk of money in witholding, we STILL owe more in income taxes. It was very sobering, visiting the tax man last week. Even more sobering were some statistics he shared.
In 1913, the maximum individual tax rates were 7%. In 1944, they were 94%. In 2007, the maximum is 35%. So it looks like, while tax rates rose for a long time, they are well down, and, therefore, "better." But, in 1944, a taxpayer could receive full itemized deductions. We could not. College tuition deductions? Gone for us. No child tax credit, reduced itemized deductions. And, hey, we're still unemployed! (For reference, although taxes now are graduated, so it's confusing, our average tax rate was 21-23%)
Come to find out we, at our SINGLE salary, were in the top 10% of wage earners in the US; we were in the top 5% with our new double salary. We learned that the top 10% of income earners pay 68.19% of the total tax paid! The top 5% pays 57.13%. The bottom 50% pay 3.3% of the taxes collected.
This is goofy. I really don't mind paying taxes. I really don't; for one thing, three of my kids are now military. Their salaries are paid from those taxes. (Why they then have to pay taxes on that salary is beyond me, and could be the subject for a whole 'nother series of blog posts. But I digress.) Roads are maintained, services are provided, the government is supported. We all have to bear a fair share of these costs. But something is not right, although it took this serious family event to make me really see it. You know, I'm getting out of my element here. My brain is more keyed toward organizational skills, history, literature and psychology. I'm not gifted in economics or politics. But there is going to have to be a change in the way we fund our government.
Just for the record, I'm for a national sales tax. I think it's the most fair solution. Here's a whole bunch of "light" reading for you on the subject.