rogerwa
Commander
- Joined
- Nov 29, 2000
- Messages
- 2,339
I was working on my taxes last night and became increasingly PO'd at our tax code.
When you hear the media go on and on about the rich getting all the tax breaks blah blah blah.. it is a flat out lie. Just for clarification, I am not rich. But apparently my govt thinks I am.
To me it is bad enough that the more money you make, the higher percentage they take. On its face that is not equitable. But for those not aware, not only do they gouge a higher percentage, they also reduce the ability to deduct. This applies even to the most basic deductions.
For instance, the standard deduction for a dependent child is $1000 (I think). However, after a certain amount of income (for married filing jointly I believe the number is ~135K Adjusted Gross) they start whitttling away that deduction for every $100 you are over that amount. This happens with a whole bunch of the standard deductions.
Lets not even get started on the Alternative Minimum Tax. This is a boondoggle. it basically says that OK no matter how many deductions you find, you still need to pay this much tax, essentially creating a false tax floor.
I found that even saving for retirement is a minefield. My advisor recommended last year (said advisor and I will be having a discussion about this) that I start putting money into a Roth IRA so that i do not have all my money in pre-tax devices. Well to my surprise, I make too much to contribute to Roth IRAs and that the govt is penalizing me for every dollar I put in. To the tune of about $300 for a $3200 contribution. Sickening.
Lets talk about consumption. My higher income also means I spend more which in turn generates sales tax. I can tell you they should name a road in my honor with all the gas I have bought over the last year. I am not looking to reduce my burden based on this, but it should go hand in hand that this is extra contribution and should be understood when they start taking my deductions away.
Since I am paying taxes through the nose, it should also be understood that my need for services is also lower. I don't require medicaid or prescription drug coverage, food stamps, or any welfare services. I send my kids to private schools, thus saving the $11,000 (estimate public school cost) per kid education cost ($44,000 as I have four). And the rest of the services I get from the gov't is no greater than anyone else.
I don't expect anyone to feel sorry for me. As my FIL says: " The taxman says everyone would like your problem". However, I want to know why this is fair.
Help me rationalize that I am being treated fairly by my govt and not as the victim of the politically correct politicians.
AArgh.
When you hear the media go on and on about the rich getting all the tax breaks blah blah blah.. it is a flat out lie. Just for clarification, I am not rich. But apparently my govt thinks I am.
To me it is bad enough that the more money you make, the higher percentage they take. On its face that is not equitable. But for those not aware, not only do they gouge a higher percentage, they also reduce the ability to deduct. This applies even to the most basic deductions.
For instance, the standard deduction for a dependent child is $1000 (I think). However, after a certain amount of income (for married filing jointly I believe the number is ~135K Adjusted Gross) they start whitttling away that deduction for every $100 you are over that amount. This happens with a whole bunch of the standard deductions.
Lets not even get started on the Alternative Minimum Tax. This is a boondoggle. it basically says that OK no matter how many deductions you find, you still need to pay this much tax, essentially creating a false tax floor.
I found that even saving for retirement is a minefield. My advisor recommended last year (said advisor and I will be having a discussion about this) that I start putting money into a Roth IRA so that i do not have all my money in pre-tax devices. Well to my surprise, I make too much to contribute to Roth IRAs and that the govt is penalizing me for every dollar I put in. To the tune of about $300 for a $3200 contribution. Sickening.
Lets talk about consumption. My higher income also means I spend more which in turn generates sales tax. I can tell you they should name a road in my honor with all the gas I have bought over the last year. I am not looking to reduce my burden based on this, but it should go hand in hand that this is extra contribution and should be understood when they start taking my deductions away.
Since I am paying taxes through the nose, it should also be understood that my need for services is also lower. I don't require medicaid or prescription drug coverage, food stamps, or any welfare services. I send my kids to private schools, thus saving the $11,000 (estimate public school cost) per kid education cost ($44,000 as I have four). And the rest of the services I get from the gov't is no greater than anyone else.
I don't expect anyone to feel sorry for me. As my FIL says: " The taxman says everyone would like your problem". However, I want to know why this is fair.
Help me rationalize that I am being treated fairly by my govt and not as the victim of the politically correct politicians.
AArgh.
