Tax Invasion
Tax Invasion
April is a yearly reminder that the U.S. government excels at collecting and redistributing taxpayers’ money on a massive scale.
In fiscal 2024, the U.S. federal government collected approximately $5 trillion in revenue, with individual income taxes the largest source, accounting for $2.4 trillion.
However, that’s never enough for some people. One persistent claim is that the wealthy “don’t pay their fair share,” which is utter hogwash.
In reality, the top 1 percent of earners in the U.S., defined as those earning approximately $663,000–$771,000, accounted for roughly 22–26 percent of adjusted gross income in 2022 but paid over 40 percent of federal income taxes, according to the Tax Foundation.
At the same time, the bottom half of taxpayers earned 11.5 percent of total AGI and paid just 3 percent of federal individual income taxes.
The “taxiest” state in the U.S. is California, whose suicidal tax-the-rich mentality has triggered a massive exodus of major companies to states with more reasonable tax laws. Tesla, Chevron, Hewlett-Packard, Oracle, SpaceX, Charles Schwab, and many others have fled the once-golden state.
Yet, there seems to be no end to California’s greed. In November, the state’s voters will weigh in on a ballot initiative that would impose a “wealth tax” on the state. If passed, the 2026 Billionaire Tax Act would levy a one-time 5 percent tax on California residents with more than $1 billion in net worth as of January 1, 2026. Payments would be due in 2027, with an option to spread them over five years for an additional fee. Numerous reports claim that roughly $1 trillion in wealth has left California for more sensible states such as Florida and Texas because of the initiative.
Generally, who benefits from avaricious government tax policies?
School districts certainly do, having significantly increased spending since 2020 despite steep declines in student enrollment, according to a November 2025 report from the Reason Foundation.
Among other findings, the analysis reveals that American public schools are approaching $1 trillion in annual spending, nearly a 35 percent increase from 2002 to 2023. Over that period, average per-student spending rose from $14,969 to $20,322.
Just Facts discloses that in 2024, education costs totaled $7,156 per household in the U.S.
It’s important to note that all the spending has no bearing on student achievement. A recent analysis from the Brookings Institution examined the latest data prior to the steep drops in student achievement since the COVID school closures, finding that “substantial increases in per-pupil spending over time have often been met with stagnant academic achievement.”
Additionally, Brookings found that economically disadvantaged students in higher-spending states “don’t achieve better outcomes than their counterparts in lower-spending states.” For example, average spending in Texas was about $10,000, compared with about $18,000 in Pennsylvania and New Hampshire. Yet average scores for students from low-income families in all three states are similar, about 0.4 standard deviations below the average for all students.
Looking through a longer lens, K–12 public school spending has increased by more than 35 percent since 2002, yet enrollment has decreased by 2.1 percent. Student achievement has also slumped, with only one-third of students nationwide scoring at or above the proficient level on the National Assessment of Educational Progress in reading. Currently, 40 percent of fourth graders are scoring below the NAEP basic level in reading, the highest percentage since 2002.
But whatever is now being spent on education is never enough for many people.
Socialist New York City Mayor Zohran Mamdani proposes spending $38 billion on the city’s Department of Education next year. That’s $3 billion more than in 2026 and represents nearly 30 percent of the entire city budget, despite lower student enrollment.
In fact, New York City schools don’t need more funding. The system is rife with waste that could be reduced at no cost to taxpayers.
As Manhattan Institute fellow Jennifer Weber explains, “In particular, the administration should focus on three areas: administrative growth, vendor contracting, and ‘due process cases,’ also known as Carter cases. Addressing these three problems will not only cut costs but also ensure that the city’s education dollars actually benefit students.”
On the West Coast, student attendance in the Los Angeles Unified School District was 747,000 in the 2003–2004 school year and has since fallen to 390,000. Despite this decline, district spending has continued to rise, driven by excessive administrative waste, questionable capital projects, and misplaced priorities. Consequently, LAUSD is projected to face a $191 million deficit by 2027–28 if current spending levels persist. As a result, the board is considering $150 million in central-office cuts.
What impact has all of LAUSD’s spending had on student success?
None. According to the latest NAEP, only 21 percent of LAUSD eighth-grade students are proficient in reading, and 19 percent are proficient in math.
Not surprisingly, tax-obsessed California stands out as one of the highest-spending states on education, currently spending $25,941 per student, placing it among the top eight in the nation, with the sharpest growth occurring in just the past few years.
Since COVID, California’s per-student spending has surged by 31.5 percent, rising from $19,724 in 2020 to its current level. Yet during the same period, California public schools have lost 318,532 students, a trend that education experts say raises serious questions about how resources are being used.
Lance Izumi, Senior Director of the Center for Education at the Pacific Research Institute, accurately asserts, “It’s very difficult to look at these cries for more funding as anything more than just funding the adults in the system and not helping the students.”
At the end of the day, much of what we pay in taxes is nothing more than legalized theft. Sure, paying for things like national defense is a good use of taxpayer dollars. However, the never-ending pile of money spent on purportedly educating children is a travesty.
In sum, inflation-adjusted per-pupil spending in 1956 was about $3,600 per student. Now, 70 years later, we spend over $20,000 per student nationwide, and it’s safe to say the educrats and unionistas will continue to demand more funding.
As Henry David Thoreau famously quipped, “The government that governs best governs least.”
We should add, “and the best government taxes the least.”
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Larry Sand is a retired 28-year classroom teacher who served as president of the nonprofit California Teachers Empowerment Network from 2006 to 2025. He now focuses on raising awareness about our failing education system.
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