I did my 2012 taxes this afternoon, seein' as how we were in receipt of our final outstanding 1099s a couple o' few days ago (that would be sometime around the 20th of this month), and we are shocked. There have been numerous articles published in the press and elsewhere to the effect that roughly half of all Americans don't pay ANY income tax. Here's an excerpt from one such article:
So there's that, for starters, and I am NOT in that 46.4% of Americans who pay no income tax. Imagine my surprise and disgust that, after about three hours of labor-intensive tax preparation, I find I have to write checks to both the Feds and the State o' New Mexico, the latter of which will ding my bank account to the tune o' just slightly less than one thousand Yankee Dollars... and that's after deducting about 15 grand in uncompensated medical expenses. I find it both interesting and troubling that a person living on a pittance of pensions from a military retirement, private pension plan, and Social Security pays that goddamned much (85% of said SS payments are taxable, go figure, as is all of both my other pensions). I don't mind paying my fair share... but what the feds and the State o' New Mexico consider "fair" and what **I** think is fair are widely divergent.
Yeah, I know... First World Problems... we has 'em. I suppose I shouldn't bitch, piss, and moan, mainly because I'm blessed that I live in the USofA and not somewhere else. Still and even... I don't get it. I must not be doin' sumthin' right.
1) About 46.4 percent of U.S. households didn’t pay federal income taxes in 2011. Mitt Romney’s right about that.
(Tax Policy Center)
So there's that, for starters, and I am NOT in that 46.4% of Americans who pay no income tax. Imagine my surprise and disgust that, after about three hours of labor-intensive tax preparation, I find I have to write checks to both the Feds and the State o' New Mexico, the latter of which will ding my bank account to the tune o' just slightly less than one thousand Yankee Dollars... and that's after deducting about 15 grand in uncompensated medical expenses. I find it both interesting and troubling that a person living on a pittance of pensions from a military retirement, private pension plan, and Social Security pays that goddamned much (85% of said SS payments are taxable, go figure, as is all of both my other pensions). I don't mind paying my fair share... but what the feds and the State o' New Mexico consider "fair" and what **I** think is fair are widely divergent.
Yeah, I know... First World Problems... we has 'em. I suppose I shouldn't bitch, piss, and moan, mainly because I'm blessed that I live in the USofA and not somewhere else. Still and even... I don't get it. I must not be doin' sumthin' right.
I've read a number of articles pro and con over the Value Added Tax. I am convinced, the IRS has served its useful life. As the USA descends into a third-rate world power, it has to change it's operating model. The IRS is buried in regulation, when all we need is say 17% tax on consumption. Everyone, illegal aliens, tourists, etc pays a consumption tax. In those two cases, it is free money. If elected I will impose it, and shut down the IRS in my first 100 days !
ReplyDeleteI'm in favor of a VAT... as long as the income tax is eliminated.
DeleteLast night Toby showed me a copy of his W2. Both of us were awed by how much income tax had been withheld. Then there was the amount that was withheld for SS and Medicare. Add that to the amount that the State of OK took. We could easily have supported a small family just on the tax dollars taken. Well, I guess we are supporting someone else's family.
ReplyDeleteWell, I guess we are supporting someone else's family.
DeleteThat you are, and so am I. I'm getting a lil bit sick o' that, too.
You have to claim your stogies as dependents. Problem solved. Or you could go the Obama regime route and blame not paying on turbo-tax or something.
ReplyDeleteMebbe it IS Turbo-Tax's fault!
DeleteVAT is not an answer. ANYtime you allow any kind of tax to be added the old ones stay and the VAT taxes are politically manipulated by the party in power. It becomes a big means of getting companies to contribute to a politician so their VAT value gets a favorable look.
ReplyDeleteValue Added Tax means the government can decide on what the value of any item is and that is what you pay. It doesn't matter what the real value is, it is ALL political in how those "values" get set.
Good point, but I'm at the point where the current tax law needs to GO. It's ridiculous.
DeleteVAT is the only other option from Income tax. Flat tax is a non-starter.
DeleteI think the VAT should be high to pay down the debt, and then relaxed. I think food, utilities, and water should be tax free. Booze and drugs 23% tax. We should be selling heroin and meth at the Pharmacies.
I could go on...
That's a pretty small-L libertarian POV, and one that I subscribe to, as well.
DeleteAs far as I'm concerned, you can bitch, piss, and moan all you want. I find the taxation of SS and pensions deplorable.
ReplyDeleteThanks for that, Jim. I believe I've already paid enough tax on such things.
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