How Low Can It Go?

[Schneed10]

Originally Posted by Buster

^

Well, he DID say our $13 a week in stimulus money in our paychecks should start showing up April 1.

Comcast.net: Obama: People should see tax cut help by April 1

April 1, huh? How appropriate.

I believe this really IS a joke.

We'll be getting $13 less a week WITHHELD from our checks.

This will decrease the amount WITHHELD, but since they are not adjusting the tax tables for next year (that I have heard), this $13 less a week WITHHELD will result in all of us OWING more or receiving a reduced refund.

My advice, adjust that W-4 so it doesn't withhold this extra money, because your tax liability will not be changing when you file your 2009 taxes in about a year. If you don't you may:

1. End up paying in.
2. Kissing your refund goodbye (which may not be a bad thing since they won't be holding your money for a year, but why risk owing?)
3. Get bumped up to a HIGHER tax bracket since they are withholding less tax and increasing your net income.

We're getting scammed.

Worse yet, since this is a "refundable tax credit", those who fall short of owing less than the $400 or $800/couple in taxes a year WILL GET THE DIFFERENCE REFUNDED with a check. Yes, those not paying taxes will receive free money. It's not a tax credit, it's a welfare spending package.

Welcome to Obamalot

Doofus.

The tax tables will not be adjusted but there are credits going into the tax code reflecting the $13 per week.

If you do your taxes right and take the credit, you won't have to give the $13 per week back.

[Monkeydad]

Originally Posted by Schneed10

Doofus.

The tax tables will not be adjusted but there are credits going into the tax code reflecting the $13 per week.

If you do your taxes right and take the credit, you won't have to give the $13 per week back.

Hope you're right but I'm glad you trust the new President so much. He's been so honest thus far.

I got this info from a CPA.

[saden1]

Originally Posted by Schneed10

Doofus.

The tax tables will not be adjusted but there are credits going into the tax code reflecting the $13 per week.

If you do your taxes right and take the credit, you won't have to give the $13 per week back.

The more I hear from people with respect to taxes the more I am inclined to believe a large percentage of our population is clueless when it comes to taxes.

A 63-year-old attorney based in Lafayette, La., who asked not to be named, told ABCNews.com that she plans to cut back on her business to get her annual income under the quarter million mark should the Obama tax plan be passed by Congress and become law.

"We are going to try to figure out how to make our income $249,999.00," she said.

"We have to find a way out where we can make just what we need to just under the line so we can benefit from Obama's tax plan," she added. "Why kill yourself working if you're going to give it all away to people who aren't working as hard?"

EPIC FAIL!

[Monkeydad]

^

That sounds like borderline tax fraud.

They'll really close up shop when they hit $249,999?


Besides, if they paid attention in the final days of the election, Obama's $250K claim became $200K, then $150K according to Biden.

[firstdown]

Originally Posted by Buster

^

That sounds like borderline tax fraud.

They'll really close up shop when they hit $249,999?


Besides, if they paid attention in the final days of the election, Obama's $250K claim became $200K, then $150K according to Biden.

No they don't have to close up shop but they could find ways of putting money away so it not considered income. They could by a car through their company instead of through their personal money thus reducing their income by that amount. I do have a friend who said last year he made right over $250,000 and that he does not see where he can make much more than that next year. He is planing on cutting back his hours some toward the end of the year so he does not jump into the higher tax bracket. I think this will become common with self employed people because why work harder to make $265,000 instead of $248,000 when all of that additional income will go toward paying higher taxes.

[70Chip]

Originally Posted by firstdown

No they don't have to close up shop but they could find ways of putting money away so it not considered income. They could by a car through their company instead of through their personal money thus reducing their income by that amount. I do have a friend who said last year he made right over $250,000 and that he does not see where he can make much more than that next year. He is planing on cutting back his hours some toward the end of the year so he does not jump into the higher tax bracket. I think this will become common with self employed people because why work harder to make $265,000 instead of $248,000 when all of that additional income will go toward paying higher taxes.

The joke among the upper middle class types (dentists, architects, consultants, et al) is that they will be taking more time to work on their golf games going forward. "Dr. Beeper" from Caddyshack comes to mind:

"Just snake a tube down her nose and I'll be there in four or five hours. Testing now."

The achilles heel of socialism is that either God or evolution has made us selfish. Nobody is going to bust their ass so that some stranger can have health care. But, we will kill ourselves for the sake of our own pleasure - a bass boat, or an in-ground swimming pool, or a weekend in Vegas with Eliot Spitzer grade whores. This is why socialism is always on the edge of the slippery slope to totalitarianism. At some point you end up with a gun pointed at you and a voice saying, "You'll do it without the benefit of a bass boat!"

[saden1]

I take it you guys are willing to consider taking a job that pays less to put yourselves in a lower tax bracket? You know, all in the interest of not paying more taxes that's going be used to help "losers" looking for a handout.

Socialism ≠ Communism. Socialism ⊂ Communism.

[Schneed10]

Originally Posted by saden1

I take it you guys are willing to consider taking a job that pays less to put yourselves in a lower tax bracket? You know, all in the interest of not paying more taxes that's going be used to help "losers" looking for a handout.

Socialism ≠ Communism. Socialism ⊂ Communism.

I wouldn't go that far, but I tell you one thing, I'm not too broken up about the income we'll be losing when my wife stops working in July.

One income is going to be a lot more advantageous when it comes to tax efficiency.

The moral hazard is real.

[70Chip]

Originally Posted by saden1

I take it you guys are willing to consider taking a job that pays less to put yourselves in a lower tax bracket? You know, all in the interest of not paying more taxes that's going be used to help "losers" looking for a handout.

Socialism ≠ Communism. Socialism ⊂ Communism.

It's not our fault. Evolution has made us this way.

[firstdown]

I just wished that ever American had to sit down at the end of the month and write out a check to the federal and state to pay their taxes. This way its not hidden in each paycheck and people had to actually write out the amount and withdraw it over and over again from their check book. Now the goverment has the employeer do their dirty work and most people have no clue what they pay in taxes. All they care about is how much of a refund will they get at the end of the year. If they had to actually pay these taxes those refund checks they receive would start to look kind of small. I love when someone making 60,000 grand a year gets all excited at getting back $500 to $1,200 like they hit the jack pot. When I hear someone like that I look at them and ask them how much they paid in taxes. They usually get this dumb look on their face and say "I don't know". So who here knows what they pay in taxes each year without looking at you taxes or pay stub?

[JoeRedskin]

Originally Posted by 70Chip

It's not our fault. Evolution has made us this way.

Are you sure it wasn't intelligent design??

[saden1]

Originally Posted by Schneed10

I wouldn't go that far, but I tell you one thing, I'm not too broken up about the income we'll be losing when my wife stops working in July.

One income is going to be a lot more advantageous when it comes to tax efficiency.

The moral hazard is real.

This moral hazard is always real for all married couples regardless of income and tax burden. Admittedly the dilemma is faced by the middle class more so than the rich (mostly have choice) and the poor (rarely have choice). I appreciate and support people doing the math, but I can't get behind the notion that people will stop working and purposefully try to lower their income in the name of tax efficiency as being rational.

The decision making starts at 250K.

[saden1]

Originally Posted by 70Chip

It's not our fault. Evolution has made us this way.

You are absolutely right, Neanderthals had it coming.

[CRedskinsRule]

Originally Posted by firstdown

I just wished that ever American had to sit down at the end of the month and write out a check to the federal and state to pay their taxes. This way its not hidden in each paycheck and people had to actually write out the amount and withdraw it over and over again from their check book. Now the goverment has the employeer do their dirty work and most people have no clue what they pay in taxes. All they care about is how much of a refund will they get at the end of the year. If they had to actually pay these taxes those refund checks they receive would start to look kind of small. I love when someone making 60,000 grand a year gets all excited at getting back $500 to $1,200 like they hit the jack pot. When I hear someone like that I look at them and ask them how much they paid in taxes. They usually get this dumb look on their face and say "I don't know". So who here knows what they pay in taxes each year without looking at you taxes or pay stub?

I do, state and federal, plus the parts, and I get irked every time i dwell on it. (and yes i think we could do with one less 22Billion dollar fighter every now as well as let a mouse or two or a whole species even (another one will pop up right?) meet its maker in San Fran.

[Schneed10]

Originally Posted by firstdown

I just wished that ever American had to sit down at the end of the month and write out a check to the federal and state to pay their taxes. This way its not hidden in each paycheck and people had to actually write out the amount and withdraw it over and over again from their check book. Now the goverment has the employeer do their dirty work and most people have no clue what they pay in taxes. All they care about is how much of a refund will they get at the end of the year. If they had to actually pay these taxes those refund checks they receive would start to look kind of small. I love when someone making 60,000 grand a year gets all excited at getting back $500 to $1,200 like they hit the jack pot. When I hear someone like that I look at them and ask them how much they paid in taxes. They usually get this dumb look on their face and say "I don't know". So who here knows what they pay in taxes each year without looking at you taxes or pay stub?

I do. $16,444 to the federal government in 2008, plus whatever for Medicare, plus whatever for social security, plus 4100 for real estate taxes, plus 2800 for Philadelphia wage, plus 5500 for PA state income. But I get your point, I'm a rarity, my mind is like the green screen from The Matrix except it's filled with cap numbers and dollar signs.