Yes, I'm blessed in the fact my wife and I make pretty decent money, but with two kids in college and two more in public primary schools we are by no means "wealthy"... And knowing that we have consciously made many very difficult choices (i.e. still renting - sold in late 04) to keep us out of any financial quagmires - only to have our tax money going to BAILOUT every frigging loser corporation/individual who failed to make these same tough choices INFURIATES THE HELL OUT OF ME!!
On top of that, with our gvt PRINTING TRILLIONS and taking on MASSIVE NEW DEBT LOADS - only to eventually destroy our savings, investments and purchasing power through substantial devaluations in the dollar - makes matters that much worse.
Summary of Our Federal Tax liability for 2008:
- We had just over $15K automatically withheld in 2008
- Four kids living at home
- Two of them in College
- Max 401K contributions
AND I STILL HAVE TO SEND UNCLE SAM ANOTHER $2,000 by April 15th!!!
In total, we're talking over $1,400 a MONTH in Federal Income Taxes ALONE - a ridiculous amount of money that I could certainly put to good uses for my family, rather than throw it down the gvt's crapper!
(note: like you, we also pay a myriad of other crappy taxes too)
Now don't get me wrong. If I knew my taxes were going to something worthwhile I wouldn't be so upset, but I honestly believe we are throwing money into a bottomless bailout pit - with no end in sight - and nothing but HIGHER TAXES (in an unsuccessful attempt to pay it off) in our foreseeable future...
Closing:
Many thanks for reading this short rant... My hope however is that I'm not alone in my feelings of anger and disgust with the system...
Where/when does it all end and how do we "the people" finally get a voice?
Randy
16 comments:
Randy,
I share with your anger about the tax situation. I have been debating with my husband about whether we should sell our house for quite a while. Both of us work and earn decent money. The biggest obstacle is if we sell our house, our tax will go up dramatically. Looking at the tax return form just make me feel sick! The tax system is designed on purpuse to encourage people to have lots of debt and they don't want you to have any savings! Look, if you have any interest earned from savings, that's taxable ordinary income. If you have mortgage interest, it is tax deductible. We have a friend who already paid off their mortgage, and then they found their income tax shoot off the roof. They in turn have to take a mortgage loan again in order to reduce their tax burden.
They say we encourgae people to save. How? The tax system is effectively punishing the savers and rewarding the spenders! It is so simple and the politicians just refuse to admit it. They are either too stupid or just don't have the guts to tell the truth.
Another reason we are hesitant to sell the house is as the hyper inflation is looming ahead, owning your own house may not be a bad idea; esp. if you can grow your own garden. So I'm still not sure if people should sell their house.
Best regards,
Haven't you noticed ? The US government is doling out taxcuts and to (partially) pay for it they cut back on, among others, moneytranfers to the states, e.g. Nevada. But are the federal taxrates going down ?
The states/cities/counties-municipalities are forced to increase their own taxes. The net effect is that the overall taxburden/cost of living of Joe Sixpack is going up.
Hi Randy.
I have been reading your blog for a while and I want to first say thanks for putting out these articles every week.
As a Las Vegas resident, I hear more of my friends getting laid off each week from the local employers.
With the unemployment numbers expected to grow each month, what are your thoughts on the local housing communities here in the valley?
As for your article on the taxes that we pay, I agree with your frustration. I took a risk and became a freelance computer developer in 2007.
I earn more today and I also pay much more in taxes than a few years ago. I do not agree with the government that folks who take calculated risks to better their career and financial well-being should be taxed more heavily.
What are your thoughts on how we can navigate through these unfair tax laws?
Thanks again and keep up the great work! I look forward to your articles each week.
The only voice we get is on our headstone once were dead. That is the goal after all of the Illuminati. They want only slaves and no middle class.
While we didn't have to pay in this year--we don't make very much and we still own a home in TX--I can empathize. I feel the same way about the SS Tax we pay on the SS money we're supposed to get once we reach our sixties, but we'll never see it because it (SS) will be bankrupt. What a scam!! To have 4 dependant children and still have to pay in...that's ludicruos!! I admire you and your wife's decision to sell way ahead of the housing massacre/meltdown, sacrificing that add'l tax break and the general advantages of ownership. THANK YOU for not being an irresponsible nincompoop like so many others that bought $300k homes on a $40k/year job. DUH!!!! America is now feeling to punishment of living a materialistic lifestyle.
God bless you and family, and for taking the time to inform so many via your blog! This blog has been life-changing for me in the economic sense of my life, as I had no idea how bad things were until I started reading about 3 months ago. :o) Post a rant anytime--it's good and free therapy!!
Anon 1:07,
Extremely valid point - the tax system punishes savers and rewards spenders favors.
Politicians do realize this, but as long as they have the power to provide targeted tax cuts and favored rates towards their corporate special interest groups - all while raiding the treasury by spending billions of deficit dollars on pork barrel projects which provide free slop for a grateful constituency base - who will once again vote these band of crooks back into office for doing so - Nothing will ever change!
Willy2 - agree! Overall tax rate and burden will HAVE to go up in order to pay for this mess.
Thank you Hau,
I expect the LV unemployment rate to get MUCH, MUCH worse. If you didn't already know, Las Vegas has an "Official 10% Unemployment rate - and it's rising quickly I wouldn't however put too much faith in that number, as the gvt severely UNDERSTATES Unemployment figures - I would double it for a more accurate representation - see this link for more info:
US unemployment rate reality (Note: this was posted in Dec 08)
Housing has much further to fall - see my latest: LV Housing crash continues
LV Housing Charts
As for the tax laws: I don't really know, but I hope it leads to an angry March on Washington with Pitchforks and torches!
Shannon,
I really appreciate your readership, feedback and blessings; and I'm honored to have helped open your eyes to our economic reality... Let's just hope it won't be as bad as I think it will be...
Best Regards to all
Randy
Randy, I agree with you wholeheartedly. If I saw my money going to rebuilding the nation, moving us away from fossil fuels and imports, and creating a new paradigm in this country, while stirring research, development, invention, science, and more, I would say YES. But it is NO, at this point in the circus show.
The government will spend and create debt one way or another: either on people, jobs, supporting the fallen, and more; or, as they are on zombie banks, a failed monetary policy, unemployment compensation, emergency room costs, tent cities, public housing, food lines, and more.
Roosevelt hired on 60% of the unemployed with government jobs programs, such as the Tennessee Valley Authority, government state buildings, highways, water systems, electrical grid through rural america, rail roads, and more, as well as government employees. All of this was before the war. It took over 20 years to get the banking system to move forward after that.
Obama seems to have misplaced his change.
The tax system as crafted by our government doesn't necessarily punish the savers--they just want you to save the way they want you to save. Guess where you can put your money, earn a yield, and it's relatively tax-free? U.S. and State Treasuries. Hmmm...I wonder why?
I am thinking that those who say "don't touch" that 401k (TV talkers) are going to be doing a disservice to their viewers. I have already cut back to minimum/full matching, and think I might take advantage of a built in loan program to draw cash at this point.
You aren't alone in your disgust. I used to pay $30,000 per year in income taxes - federal and state - and got nothing in return, nor will I get anything, as the entitlement system will be utterly defunct before I'm eligible to collect from it.
And to make matters worse, I disapprove of 90% of what the government spends my taxes on, such as aid to a particularly vicious country in the Middle East and oppressing my freedom domestically.
My solution, which admittedly is not appropriate for many, was to quit working. No work, no taxes.
Dave - Erstwhile Urban Wanderer
"If men had no means to store value, i.e., to save, neither long-range planning nor exchange would be possible." Sir alan greenspan
Don't feel bad Randy,
My federal tax bill is 800k this year.
Damn it, nobody said wealth transfers were supposed to be fun. Now quit screwing off and send your check in--banks have dividends to pay, you know?
Someday, you'll look back at this post and say, "Those were the good old days when we weren't paying 70% taxes."
Randy,
I share your frustration like many raders. But the $ for these bailouts has been borrowed or printed. At some point, gov't will try to raise taxes and there will be a revolt, as most households cannot afford a tax increase.
Secondly, I hope your kids are studying nursing. If not, I hope you know someone who can hire them when they graduate. Most other majors like Computer Science, Engineering, Accounting, etc., are worthless unless they plan to move to China, India, or other poor countries where our corporations are hiring.
Thirdly, I blame the American people for not having a voice, because they refused to consider candidates like Ron paul, Ralph Nader, Dennis Kucinich, Bob Barr, or Chuck Baldwin who would give them that voice. An ignorant public does not deserve economic prosperity or civil liberties.
Really appreciate the feedback and excellent points folks... It's good to know that I'm far from alone in my anger/frustration with this completely broken system of ours...
And to Anon 12:14 - Holy Crap! OK, Your point is made and I don't feel quite as bad now... What (may I ask) do you do for a living?
Regards to all
Randy
It seems funny to me that you rant over taxes when I see what you pay in America and I pay in The Netherlands. Granted I wouldn't want to pay taxes in the States as well, with your tax dollars being thrown away to companies that should fail. On the other hand, everyone in America had a choice to save and live within their means or.... Go on a lending and spending spree as most of you did.
And you now have to foot the bill and dragging most of the world with you, thanks! :)
Don't get me wrong Randy I sympathize as you seem to be someone who does it the right way and still pay for the folly of others, which would aggravate me no end as well.
If it makes you feel any better, I made roughly 94.000 Euro's last year, of which I get to keep around 64.000 so if you think you have it bad :)
Deduct from that my mortage, car, energy, insurance, etc, etc.. And you'll notice that you do not have it quite as bad. Hope I made your day a bit brighter
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