Taxes

January 31 has come and gone, and thus I am eagerly waiting for my parents to mail me my W2’s so that I can file taxes for 2008. I am not a masochist, I just enjoy looking at how much money I made (or didn’t make) over the year and taking care of these things early. Looking at the tax tables, apparently I will not have to file taxes for the next two years of Peace Corps service, as the monthly accruals for the readjustment allowance will staunchly place me below the poverty line, and with the global markets tanking, capital gains and dividend income from my modest portfolio seem unlikely. The Peace Corps provided each volunteer with hard copies of 1040 forms, but since I live in a mid-sized city I’ll be filing via H&R Block online. The “toughest job I’ll ever love” is a little bit easier with the advent of modern globalization.

I’ve heard countless people over the years complain bitterly about how much they pay in taxes, though my experience might have been more intensified given the time I spent working in finance. While I agree that it is painful to part with money, I never considered the money earmarked for taxes to be mine anyway. I’m probably not in a high enough tax bracket to really feel the pinch, but I was always under the impression that the rich never paid much in taxes anyway (on a percentage basis).

I have not gotten a formal introduction to the Burkinabé tax system, but here are the informal clues I’ve gathered:
-The IRS-equivalent buildings are usually in great condition and emanate an aura of largesse and power.
-Burkinabé dislike using external accountants because they don’t want people to know exactly how much money they are making, including the government (I guess professional discretion doesn’t exist).
-Small businesses are assessed a flat tax, payable weekly. The amount is determined by a local government agent and has no correlation with the amount of revenue or profit actually earned.
-I believe there is an annual tax due from small businesses that bears some relationship to the income earned, but I’ve heard that the rate is excessively high because accounting records are incomplete at best (see bullet #2 above).
Generally, it seems that the American taxation system is more favorable to tax payers than that of Burkina Faso. Additionally, Americans can see the fruit of their tax dollars and feel the effects in their daily lives, and I’ll wager that many of you take these “fruits” for granted (as I once did). A smattering of examples of your tax dollars hard at work:
-Paved roads. In Burkina Faso, more roads are unpaved than paved. I can assure you that Six Flags cannot compare to riding in a ramshackle bus down a dirt road. Public transport on an unpaved road is way more turbulent, jarring and at times nerve-wracking.
-Mail. To receive mail, one must rent a post box at a post office (i.e., there is no mailman to deliver mail to your door). Most villages do not have post offices, thus requiring travel to a nearby city or regional capital to retrieve mail. Additionally, there is a fee for not picking up packages within one week. You can opt to have mail sent poste restante, but that also levies a fee.
-Clean water. The tap water here, if you’re lucky enough to have it, is polluted and loaded with yummy amoeba like giardia. Myriad Burkinabé have warned me not to drink water here because it is sale (dirty), and subsequently knocked back a big ol’ gobelet of untreated tap water. I’ve heard that people who live in village and collect water from a well (or pay to use the village pump) can actually see things floating in the water. Now, you’re probably thinking that, hey, water in America isn’t free. Well guess what, the Burkinabé also pay for their water too, dirty water at that, and it seems to be more expensive on a relative basis than in the US.
-Trash. I remember my family paid for trash pickup in the suburbs, but in the city Dave and I put our trash in a dumpster or on the sidewalk and once a week a magic truck would come by and whisk it away. Here, people just throw it anywhere (literally) or burn it. I have become used to seeing trash strewn everywhere, and occasionally wading through when walking.
-Police. At a recent training session, the Peace Corps Safety and Security Coordinator confirmed that sometimes when one calls the police, they say they don’t have enough gas in the police car to drive over and investigate the scene of a crime.
-Public transportation. Non-existent. In major cities like Ouaga and Bobo, green-colored taxis take people to a limited number of destinations, and often stop to pick up other passengers along the way – the taxi rides are a flat fee (based on destination) and that way the drivers can maximize the profitability of each trip.

I admit that I am over-dramatizing the situation a bit in order to make my American readers feel more warm and fuzzy about paying taxes (if that’s possible). There are two sides to every coin, and I will say that:
-Lack of paved roads doesn’t deter the Burkinabé from being mobile in most cases, it just takes them a little longer to reach their destination.
-It is probably better for the environment to not have door-to-door mail delivery (no fossil fuels consumed by delivery trucks, less trees killed for envelopes). Also, the post office guy in Orodara, Thierry, is very nice – when he sees me or Dave out in town, he will yell to us that we have a package waiting at the post office.
-I’ve heard that women gathering at the water pump in village is a social scene (think Gossip Girl without blackberries, or your classic water cooler vista from an American office). Also probably better for the environment, since everyone is more conscious of the water they use and consequently waste less.
-With regard to trash, I can sincerely note that people here have less trash than Americans. I’m not referring to recycling – just that items are less “packaged” in general and the Burkinabé are loath to throw anything away that could be salvaged. Almost everything can be repaired or repurposed. Very little is wasted.
-The police here are generally very friendly, professional and nice. I don’t think in the US the chief of police would invite a foreigner to visit the station (maybe under duress) and shower them with praise and tell them that their presence enriches the community. I’m pretty sure that INS and the Office of Homeland Security don’t allow that scenario to occur too frequently.
-The lack of public transportation has actually worked out well for me, since I have no choice but to ride my bike everywhere, forcing me to exercise more in the past three months than I have in the past three years. Also, crammed Burkinabé taxis are better for the environment since more people ride in fewer cars (in theory).

In conclusion:
-Pay your American taxes with a grateful smile.
-Living in Burkina ain’t so bad, and I don’t even have to pay taxes while I’m here!