Income Taxes

[tw]

Many are so uniformed as to not even know if they pay more or less taxes - or why. Reagan claims to have lowered taxes. Correct if you only look at withholding. Incorrect when the FICA increas is included. If people did their taxes, then they would have seen Reagan lie. Reagan knows that most of us are so stupid that we cannot do our own taxes.

Many instead pay $125 to have someone else do their taxes. I just discovered that I know one of those 'tax experts'. She is still in high school! Usually the computer makes it easy. But the more complicated returns, and especially amended returns, require hand written forms.

Look folks. I make no bones about the many who don't take responsibility for their own lives. But if one isso irresponsible as to need "tax experts" - then one possesses no facts to ever complain about taxes nor praise a mythical tax solution to the economy.

If taxes are too complicated, then why are you not out there kicking some politican's butt? Anyone who pays $125 for tax returns should be billing their Congressman. Why instead do so many march like lemmings to Jackson Hewitt or H&R Block? A high school kid - one without a diploma - does the more complicated taxes including deductions.

Why do we so fear 1040s? Like lemings we don't hold those Democrats nor Republicans responsible for tax codes that, for example, permit Carnival Cruise to operate without paying any taxes. Some even think that a Bush economy solution is a 'smart' tax cut program. Now there's an oxymoron. Which one? - Bush solution, smart, or tax cut.

[elSicomoro]

Originally posted by tw
Many instead pay $125 to have someone else do their taxes. I just discovered that I know one of those 'tax experts'. She is still in high school! Usually the computer makes it easy. But the more complicated returns, and especially amended returns, require hand written forms.

Last year (1999), I moved from Missouri to Maryland. I decided to do my own taxes, which meant that I had to do my federal taxes (easy) and state tax forms for Maryland AND Missouri. (And let me tell you all something, NEVER EVER move during the middle of the year, unless you file your taxes on a fiscal year system. They make it incredibly hard to make out your taxes. F**k state's rights...)

In short, it wound up taking me about 4-8 hours plus to do my taxes. Things were so confusing. :-(

This year, I moved from Maryland to Pennsylvania. On top of that, when I first moved here, I was working in New Jersey. On top of that, I had student loan interest to claim for this year. After the debacle and hell I went through last year, I walked up the street to H&R Block and gladly paid my $126 for them to do my taxes. I will admit that I was concerned about the experience of my tax rep. On top of that, they had to send my state returns over to their main office in Southampton to have them done. But realistically, as much as we do get screwed on our taxes, it is even harder to figure out that we're actually being screwed. I consider myself a rather intelligent individual...and I must admit that trying to understand the US (and various states') income tax systems is rather difficult. Therefore, I can totally understand why people go to H&R Block or Jackson Hewitt.

If ignorance is bliss, I'm rather blissful...

--
Sycamore--Back from here, there, and everywhere
Sycamoreland--http://syc75.tripod.com
ICQ--7810696

[tw]

Originally posted by sycamore
In short, it wound up taking me about 4-8 hours plus to do my taxes. Things were so confusing. :-(

This year, I moved from Maryland to Pennsylvania. ... After the debacle and hell I went through last year, I walked up the street to H&R Block and gladly paid my $126 for them to do my taxes. ...

If ignorance is bliss, I'm rather blissful...

First, your returns were probably complicated because you were not doing them every year previous. Second, those computer program make it so much simpler. Third, those taxes are so difficult because we all do not do our taxes, then let people like Reagan and now George Jr outrightly lie to us about tax cuts. It amazes me even in this forum that some actually believe his half truth lies on taxes.

So how ignorant are we about taxes? Example: you work for a company that withholds maybe 7+% for social security. So your SS tax is 7+%? Wrong. Its more like 15%. You would understand why if you were doing your taxes. We have the politicans we deserve.

[elSicomoro]

Actually, I've done my taxes every year since I started working. Usually, I've been able to use the short form, and have done them myself. However, because of my split-state living situation in 1999 and 2000, I had to fill out long forms in both Maryland and Missouri for 1999. (You should look at the Maryland one...it's a piece of work.) I have a pretty good idea on the 1040...that's actually not the hard one. I have no intention of leaving PA this year, so next year's taxes should be a breeze.

And that is the problem right there--state taxes. Here, they are generally low (except for the city tax you pay if you live or work in Philly). Maryland's state taxes are actually rather high. And of course, it didn't help that I moved up 2 tax brackets in 1999 (going from part-time work in college to a full-time job). But each state has its own little quirks and nuances in filing status, standard deduction, etc.

Nobody is fooling me on this tax cut--I believe I figured my savings to be around $300 a year, which really isn't squat in the end. Put that $300 towards safer schools or a reduction in the deficit.

Regarding OASDHI, I just figured mine on my pay stub...and it comes out to 7.65%, which sounds just about right, as I believe the employer picks up the additional 7.xx%. (Unless you're self-employed, then it's the full amount.) So Tom, maybe you can shed some light on why this 7+% is wrong?

[tw]

Originally posted by sycamore
...Regarding OASDHI, I just figured mine on my pay stub...and it comes out to 7.65%, which sounds just about right, as I believe the employer picks up the additional 7.xx%. (Unless you're self-employed, then it's the full amount.) So Tom, maybe you can shed some light on why this 7+% is wrong?

You identified the numbers correctly. What is your real income? Then add about 7.xx%. Its a neat little trick to make you feel your SS is only 7.65% while really taxing you for 15+%. Your reported income is lowered so that you don't see the total amount of taxes taken from your income. When you work for someone, estimate your actual income at about 5% higher than what appears on your W-2. This hidden 7.xx% SS tax was just another way for policitans to increase taxes - and have you not know it. It was another way that Reagan could increase taxes but claim your taxes did not increase.

That $126 to HR Block or Jackson Hewitt is really another $150+ tax bill. That $126 may be taxed income. More politicans play these tax games because they have created a monsterous tax structure that only adds taxes we don't see. Too many don't even do 1040EZ - and therefore will believe the politican's political tax lies - because they do not do their own taxes.

In the year of tax simplification, I filed something like 13 forms - my record. In those same tax law simplifications, Carnival Cruise bribed politicians so that Carnival never paid any taxes. Carnival still has massive tax free incomes.

Now Bush is talking tax credits to fix this or that? Just another politican screwing up the tax laws with useless complications while the myopic believe he is 'fixing' the economy. Only addicts need that kind of fix.

Another addiction example. Many government tax breaks provide homeowners with less taxes when owning a home. Therefore all home prices rise accordingly. Now we have this big federal 'tax relief' program - and all these unproductively employed people - to keep housing prices "higher". IOW without the program, then housing prices would be lower - and just as affordable as with the tax programs. Yet if we eliminate this inflation creation program of tax relief to houses, then current homeowners will suffer a depreciation in their home value. We have created an addiction because politicians again play money games.

So how do you make recessions? Employ people in unproductive jobs - maintain the addiction. Make complicated tax laws. Now we need all those unproductive government jobs for housing subsidizes, and all those tax lawyers, and all those tax prepairing services because the tax forms get more complicated. So who does the politician blame? The IRS! Politicians simply blame their victims for the tax mess. And we let it happen. Many don't do our own taxes - and therefore we don't get angry every April 15 and kick some politician butt.

And how simple are taxes? A high school student, without any accounting background or economic training, is doing complicated taxes with all those depreciations. Many actually feel their tax preparers know the 10,000 pages of tax code? We have the politicians and the system we deserve. We actually think this high school student must be more accurate then us - because we pay her employer $125.