Rules of the Game

Both Mitt Romney and Newt Gingrich have released their income tax returns, and critics are weighing in on whether both paid their fair share in taxes. Some will say that Romney’s percentage rate was too low, and others that Gingrich used the S corporation regulations to avoid paying Medicare taxes.

But didn’t these two play by the rules? They’re only doing what most of us do – take advantage when it comes our way. And that’s often not fair.

Warren Buffett may not think it’s right that he’s taxed at a lower rate than his secretary, but how many Warren Buffetts are there? Why do people spend money on tax preparers? If a loophole is available to you, wouldn’t you be crazy not to make use of it? I submit that most of us go with the flow when the wind blows in our direction. We use the written – and often the unwritten – rules to get ahead.

Did you ever wangle your way backstage at a big concert because you knew someone in security or in the band? While watching football, did you cheer if the referee made a controversial call in your team’s favor, even when it was wrong? Did you get into a great college ahead of someone with equal qualifications because your dad was a big donor?

Those advantages can be something of a leveling influence. One individual may have access to a perk that’s unavailable to his neighbor, and vice versa – but isn’t that life in the big city? If a rule is inherently unfair, isn’t it usually the rule – or the lack thereof --that’s the problem, more than the individual taking advantage? Which is why rules are tinkered with so often.

Legality is one thing – but fairness, whether we like it or not, is usually quite another. You already know which is easier.