Barreling Toward Tax Day
Got the taxes back from the accountant this week. We owe in the four figures to the fed. I’m OK with that. I’d rather owe than get a refund. We’re getting a refund from the state. Go figure. When I have some time, I’ll sit down and compare our tax burden to last year’s burden on a percentage basis. In the meantime, any tax stories out there? Anybody get hammered with a gotcha? Anybody experiencing the glory of a “middle class tax cut?”
I just got my first check with the “middle class tax cut” so generously granted to me by the Federal Government. I get to keep a whole $5 per week!
Gee, thanks….
Posted by .(JavaScript must be enabled to view this email address) on April 10, 2009 at 0951 hrs
my middle class tax cut netted me 13/month - that is almost 6 gallons of gasahol.
Posted by Clint on April 10, 2009 at 0959 hrs
As an active student last year, there was a very nice flood relief credit in the double credit. That really helped reduce my federal tax burden to .... 0
I still love Bush for that.
Posted by .(JavaScript must be enabled to view this email address) on April 10, 2009 at 1007 hrs
Lemme put it this way. I feeling very patriotic this tax season Joe.
Posted by .(JavaScript must be enabled to view this email address) on April 10, 2009 at 1010 hrs
Here’s a “fun” exercise to do around April 15th. I prepared individual tax returns for a living for 20+ years and always gave this information to my clients. Everyone was stunned as to the amount they actually paid each year. You will be too.
Here’s how to do this “fun” exercise..
Add together:
+ Line 61 form 1040 (Federal income tax)
+ Line 40 form 1 (Wisconsin income tax)
+ Property taxes paid
+ Line 4 from your W-2 (Social Security tax)
+ Line 6 from your W-2 (Medicare tax)
+ double the SS and Medicare tax since your employer has to pay double what was actually withheld from your check
+ If your married don’t forget to add you spouses SS & Medicare taxes, doubled of course= Majority of taxes you paid (doesn’t count sales, gas, utility, etc taxes since they are harder to figure out but significant none the less)
Now take that total and divide that over your wages, interest, dividends, etc. to arrive at the percent of your earnings paid to your government.
You’ll be surprised at the total amount paid and the percent paid. Most will find that the total taxes you paid exceeds any other expense… more than: owning a home, or rent, or clothes, or food, or transportation, etc.
The question you should ask yourself is… are you getting back enough from your government compared to what you paid?
In my case in 2008 41.5% of what I made was paid to the government! How about you?
Posted by .(JavaScript must be enabled to view this email address) on April 10, 2009 at 1107 hrs
MB - I did this earlier in the year. Ours came to over 46%
Posted by .(JavaScript must be enabled to view this email address) on April 10, 2009 at 1119 hrs
You’ll be surprised at the total amount paid and the percent paid. Most will find that the total taxes you paid exceeds any other expense… more than: owning a home, or rent, or clothes, or food, or transportation, etc.
Oh absolutely… and as you say, not only does your calculation not include sales tax, gas tax, tax in liqour, excise taxes on hotel rooms, rental cars, exise taxes on plane tickets, extra taxes on phone service (universal service fee) etc
AND THEN don’t forget that even the price of EVERY PRODUCT WE BUY, which we don’t think of as “tax” is INFLATED because those companies must over the effect of THEIR taxes.
So you may buy a can of coke for a buck. Pay 5.5% sales tax for a total of $1.06. But if you figure the fact that the $1 that was the actual cost of the product… Probably 50% of THAT cost is a result of the taxes coke pays (on their employees, on things they purchase and use, property taxes, blah blah blah (see list above))
The ripple effect of tax increases that permeates through our economy that gets buried in the “cost” of a product that people no longer can see as a “tax” is HUGE.
As for my taxes. This was the first year in about 10 years that I didn’t have to pay in. I guess building a huge new house, the additional mortgage interest deduction from that, additional property taxes, along with the old house not selling so I still write off the mortgage interest on that and property taxes on that… My taxes came out better this year. Of my refund doesn’t even come close to covering my property taxes on the house that I’m not even using. But I guess I’m doing my “civic duty” to pay for free school for kids in West Allis and New Berlin. I’ll sit back and await my “gold star for my charitable act” I’m sure its coming.
Posted by .(JavaScript must be enabled to view this email address) on April 10, 2009 at 1227 hrs
For 2007, I come up with 25%. Or 17% if you take out the double SS and Medicare because even though my employer pays for it, if they didn’t that doesn’t mean that I would get it
Posted by .(JavaScript must be enabled to view this email address) on April 10, 2009 at 1229 hrs
Better than being homeless and paying nothing.
I guess the more someone makes the more they should pay is not fair. Maybe we should have the poor minimum wage earners pay the same amount so that they cannot even afford a box let alone a huge house.
I am glad to pay my share, I wish that the whining would stop, it isn’t like this is ever going to change no matter who is in charge.
Be thankful you have it so good, many others do not.
Posted by .(JavaScript must be enabled to view this email address) on April 10, 2009 at 1409 hrs
MoveForward…when did your IQ drop to 10?
People that make minimum wage pay ZERO TAXES, you jackass. People that make significantly MORE than minimum wage page ZERO taxes. You can be a LOOOOONG way from “homeless” and not pay a single DIME in income taxes (jerk).
Posted by .(JavaScript must be enabled to view this email address) on April 10, 2009 at 1423 hrs
Hey MoveForward -
Question #1 - Why do you think that it is a good idea to punish success? i.e. making more money and living the American Dream?
Question #2 - Why the hell does the government spend as much as it does? Or are you among the mindset that the government can tax and spend its way to prosperity?
Question #3 - Are you aware the the world needs ditch diggers and that no matter how hard you (or anyone) tries - there will always be poverty and a lower class. Even in Communism (the great equalizer) there is the haves and the have nots
You can not raise up the poor by taking down the rich!
Posted by Clint on April 10, 2009 at 1438 hrs
There are going to be a lot of pissed off people next Spring. People are getting a “pay raise” now because of reduced fed taxes. Next Spring, people are going to find out they are going to less of a tax refund, or if they get a refund, they might be paying.
Another thing that irks me. I work 2 jobs- teaching and at Wal Mart. Because of that, they Fed is acting like I am qualified for the earned income credit out of my check at my part time job. I am going to be so screwed next Spring thanks to Obama and the Dem’s.Posted by .(JavaScript must be enabled to view this email address) on April 10, 2009 at 1448 hrs
I earned my rebate the hard way, as I’m sure many of you did as well. Three cheers for being able to write off capital losses.
Posted by Recess Supervisor on April 10, 2009 at 1548 hrs
just over 35%. WTF does the government need over 1/3 of my total income for? This calculation should be required of all Tax Preparers for their clients. Most people don’t have a clue how much taxes they pay - they only see the refund every April and love their government for giving them money.
Posted by .(JavaScript must be enabled to view this email address) on April 10, 2009 at 1614 hrs
I suggest that, rather than use withholding, taxpayers should have to write a quarterly check to the government, like the self-employed do. That might cause a groundswell to abolish income taxes.
Posted by Steve on April 10, 2009 at 1649 hrs
Question #1 - Why do you think that it is a good idea to punish success? i.e. making more money and living the American Dream?
Never said that and did not mean that. I am just saying that you people seem to have it pretty good but yet are constantly complaining.
Question #2 - Why the hell does the government spend as much as it does? Or are you among the mindset that the government can tax and spend its way to prosperity?
I believe that state and federal governments do spend more than they need to but local governments are always the ones that get the short end of the stick. I do not believe the government can spend us into prosperity but I am willing to pay my share and not whine about it.
Question #3 - Are you aware the the world needs ditch diggers and that no matter how hard you (or anyone) tries - there will always be poverty and a lower class. Even in Communism (the great equalizer) there is the haves and the have nots
Yes I am aware of that. Most of them probably make well above the average worker and because of that they pay alot in taxes too. There always will be poverty this is true but to assume people are poor because they just want a welfare check is not really responsible. There are some like that but the working poor have been trying and maybe they are just not able to make it rich no matter how hard they try. I am not condoning any socialism or communism here if that is what you are implying, I am just saying that we should be thankful that we have it so good.
People that make minimum wage pay ZERO TAXES, you jackass. People that make significantly MORE than minimum wage page ZERO taxes.
So why do you continue to defend those that make a lot of money but aren’t paying more taxes? Don’t use trickle down because that is bullshit. They are sitting on their money just like everyone else. Greed is the culprit, too much is never enough.
You can not raise up the poor by taking down the rich!
You cannot raise up the poor by giving tax breaks to the rich. The rich get richer, the poor get poorer.
Maybe you never knew a poor person but I can tell you that they don’t enjoy being that way.Posted by .(JavaScript must be enabled to view this email address) on April 10, 2009 at 2013 hrs
You cannot raise up the poor by giving tax breaks to the rich. The rich get richer, the poor get poorer
MF… If only I had a couple semesters to teach you something about economics instead of liberal soundbytes…
There always will be poverty
Able bodied people in poverty in this country chose to be there. We can no longer bring them out of it than we would make them decide to get up in the morning. But the list of people willing who claim to want to throw money at the issue, but really just want to bring people under government control continues to grow.
but I am willing to pay my share and not whine about it.
So you are part of the problem. Some people chose not to be.
Posted by .(JavaScript must be enabled to view this email address) on April 11, 2009 at 0001 hrs
In 1980 my Dad got laid off from his job - for an entire year. He worked five - count them, five - part time jobs to keep the mortgage paid and food on the table for his family. Not glamorous jobs either. Delivering pizzas, cleaning floors at the dime store at night, breeding cows.
Now days we have able bodies Americans that won’t take certain jobs because they feel they are beneath them. Hence the “we need the illegals to do the jobs that Americans won’t do” terms. Although most of the illegals around here are working construction. But I digress.
If there were more people like my Dad today and a lot less like MF and his “you have more than me and that isn’t fair, so you can bail my lazy ass out” mentality we would all be a lot better off.
I’m just sayin….
Posted by .(JavaScript must be enabled to view this email address) on April 11, 2009 at 0838 hrs
I agree JJ.
First, people make a lot of the “gap” between the rich and the “american poor” (which isn’t poor at all because “american poor” means you have a cell phone, dish network, probably a big ass TV, free utilities and free healthcare. )
But they talk about the middle class “not being able to make it” I think thats just very overblown demagoguery. I think most of the middle class is doing fine. Certainly a percentage of the american middle class is struggling because their propensity to live outside of their means AND an entitlement mentality that shackles them into complacency. Its a cultural problem, not an economic problem per se. The economic CONSEQUENCES are apparent, but not the cause. It starts in high school. Kids buying expensive new cars. Spending 90% of their income on debt of a depreciable asset. (and add in luxuries like cell phone) And once you have a nice car, its very difficult to “stoop” to driving. Then you graduate and you are already in debt. If kids be smart, buy used cars. Start to save money to invest in smarter assets like homes instead of begining a lifetime of subservience to their own debt.
And then add in to that the unwillingness of the middle class to change and adapt. As our economy evolves and supply and demand affects unskilled factory jobs the middle class is slower and slower to react. Spends more time complaining about a door closing then going to look for a new door.
Inherently some people “get it” and figure out they control their own desity and do very very very well. Now don’t get me wrong, the outliers (outrageous compensation packages of executives put in place by the good-ol-boy network of corporate boards and fund managers who control voting rights of something like 57% of the stocks out there because americans just blindly (because of tax manipulation of our government of how we keep more of our money) toss money into mutual funds.
But the “working rich” have figured it out. That you can’t sit around and wait for someone else to make your life for you. of course the “working rich” are continually saddled with a bigger and bigger burden of taxes.
Then you have the other half that has become a victim of their own inability to deal with “want”
Its ironic. The greediest people are those who demand something for nothing. Yet as long as you aren’t “rich” you are allowed (in our culture) to call others greedy and demand their money. (and thats ok) You are allowed to play the simplistic “well I just don’t see why those who make more don’t pay their fair share” when they reality is they do exponentially. Doesn’t matter. Entitlement mentality and GREED of people who can’t live within their means has no bounds. (and no conscience)
And those who KNOW how to “make it”... If they try to “sell” their method. They are just accused of not caring, being “greedy” themselves, when the reality is the exact opposite. The irony continues. If people who aren’t “doing as well as they think they “deserve” too” would stop blaming and start listening and learning from those who have, they would do better. But thats not the “american way” anymore. The american way now is to sit back and let Obama tell you that “you’ve done your part” now let socialism do its part.
Posted by .(JavaScript must be enabled to view this email address) on April 11, 2009 at 0948 hrs
I wonder how long it will be until Doyle goes California on us and keeps our State refunds?
Posted by Michael J. Cheaney on April 11, 2009 at 1652 hrs
MF… If only I had a couple semesters to teach you something about economics instead of liberal soundbytes…
Could not live with myself to be like you!
If there were more people like my Dad today and a lot less like MF and his “you have more than me and that isn’t fair, so you can bail my lazy ass out” mentality we would all be a lot better off.
JJ, I’ll bet your dad never whined whined like a pussy bitch. Don’t think you are better than me, you don’t know me. I would bet that I am more like your dad than you are. The government has never had to bail “my lazy ass” out of anything. I served in the Army 3 years, never been on welfare and pay my taxes without whining. I don’t need to be “rich” because that is not what is important to me. I am comfortable and don’t take more than I need. So STFU.
Then you have the other half that has become a victim of their own inability to deal with “want”
You shouldn’t talk about your wife like that.
The greediest people are those who demand something for nothing.
The greediest people are the ones who never have enough. Those who think only of themselves and how unfair it is to them that they have to pay taxes.
The american way now is to sit back and let Obama tell you that “you’ve done your part” now let socialism do its part.
There is too much that all Americans want that forces our politicians of both parties not to cut spending. You want your tax breaks even though you can afford to pay and some other guy wants his welfare check so he can buy a bottle of Mad Dog. The politicians want everyones vote (and both votes count the same) so they keep spending. Good luck convincing the people that you will take your tax cut and create a new job for the guy on welfare so he can move up to a bottle of Bacardi. “Live life like you mean it”.
and finally,
Able bodied people in poverty in this country chose to be there.
May be true for some but lumping it as a general statement is stupidity. Likely you have never been poor but still are an expert on poor people. There are far too many who are not able and you would probably put them in a leper colony.
Where is your soul?
Posted by .(JavaScript must be enabled to view this email address) on April 12, 2009 at 2348 hrs
lol… Nice post MF. Very classy!
Posted by .(JavaScript must be enabled to view this email address) on April 13, 2009 at 1004 hrs
MF, you’re an idiot. We’re all laughing at you now re #21.
Posted by .(JavaScript must be enabled to view this email address) on April 13, 2009 at 1008 hrs
Yes - the class act award goes to…... MF!
Posted by .(JavaScript must be enabled to view this email address) on April 13, 2009 at 1743 hrs
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