The Tax Man Cometh!

[Felix The Assassin]

Last Spring I voiced my opinion of the POTUS's plan of getting more taxes out of the middle class, and was laughed at for being skeptical.

As tax preparation software is dropping in price, I hope the days ahead find all of you owing less than $2500.


Now I ask of you, list your tax shelters, Please.

[Illumina Drathiran'ar]

The radio told me that Obama wanted to make things easier for the "middle class" including breaks for households making less than $80,000 a year... Well, SIGN ME UP for THAT middle class. I guess we's poor where I live. If'n I finally get myself a Paw 'round here we'll finally be set!

[Timber Loftis]

Originally Posted by Illumina Drathiran'ar The radio told me that Obama wanted to make things easier for the "middle class" including breaks for households making less than $80,000 a year... Well, SIGN ME UP for THAT middle class. I guess we's poor where I live. If'n I finally get myself a Paw 'round here we'll finally be set!

Actually, since the 80's the "middle class" ranging from lower middle to upper middle has run up to those making around $200k/yr. In fact, once "middle class" wages started topping $200k, it was Reagan who united those upper middle class people with the truly rich and rammed through a reinvented tax code full of his "trickle down" bullshit economics ideas.

But basically the "middle class" works for a living and has to rely on wages from a job. "Upper class" starts getting into the ranks of people who have enough money that they don't have to have a job.

Oh, and my tax shelter is mortgage interest, which is all deductible. Sadly I no longer can deduct my student loans, or get the tax credit for my kids. Most of the things we used 10 years ago as deductions are things that have cut-offs as your income goes up. But, you can own as big a house as you want and make all the money you want and your mortgage interest is still deductible. I'd like to thank my fellow Americans for at least helping me pay my mortgage. I file early, usually get a big hunk back, and normally throw that sum at the principle on my mortgage, with a little kept over to play with. This year, however, I've got to find something else to spend it on, because banks are assholes.

[VulcanRider]

As a first-year preparer I'm only allowed to handle simpler returns but the biggest items I've seen are home ownership (mortgage interest and property taxes are deductible) and the Earned Income credit. This year the EIC allows families to claim a 3rd child.

[Felix The Assassin]

Originally Posted by Timber Loftis Oh, and my tax shelter is mortgage interest, which is all deductible. Sadly I no longer can deduct my student loans, or get the tax credit for my kids. Most of the things we used 10 years ago as deductions are things that have cut-offs as your income goes up. But, you can own as big a house as you want and make all the money you want and your mortgage interest is still deductible. I'd like to thank my fellow Americans for at least helping me pay my mortgage. I file early, usually get a big hunk back, and normally throw that sum at the principle on my mortgage, with a little kept over to play with. This year, however, I've got to find something else to spend it on, because banks are assholes.

Doesn't this become an oxymoron? However, as a tax option I can see the light. Maybe a refinance (without equity distribution) is in order.

[John D Harris]

Originally Posted by Timber Loftis Actually, since the 80's the "middle class" ranging from lower middle to upper middle has run up to those making around $200k/yr. In fact, once "middle class" wages started topping $200k, it was Reagan who united those upper middle class people with the truly rich and rammed through a reinvented tax code full of his "trickle down" bullshit economics ideas. But basically the "middle class" works for a living and has to rely on wages from a job. "Upper class" starts getting into the ranks of people who have enough money that they don't have to have a job. Oh, and my tax shelter is mortgage interest, which is all deductible. Sadly I no longer can deduct my student loans, or get the tax credit for my kids. Most of the things we used 10 years ago as deductions are things that have cut-offs as your income goes up. But, you can own as big a house as you want and make all the money you want and your mortgage interest is still deductible. I'd like to thank my fellow Americans for at least helping me pay my mortgage. I file early, usually get a big hunk back, and normally throw that sum at the principle on my mortgage, with a little kept over to play with. This year, however, I've got to find something else to spend it on, because banks are assholes.

ROTFLMAO going to find somebody else to spend it on.... while cussing trickledown ROTFLAMO Hey TL that money you're going to find someone else to spend it on where does it go? Does it just disapear? Or does it go to back into the economy, you know pay the wages for the employees of where you spend it? or Maybe it goes to buy more products and help keep those companies in business and pay thier employees? ROTFLMAO well spank my rear end and paint it purple it seems everybody else isn't paying enough in taxes but TL, who itemizes to get the mortagage deduction. Hey TL If'n we, the American people aren't paying enough in taxes why don't you help out and just take the standard decuction? Or give it all back, or the amount you think the tax rate should be to the federal government? You remind me of my Lawyer brother-in-law who screams about the rich are paying enough when he makes more money then God. He's the very type of person he says should pay more in taxes yets he takes every deduction he can to pay less in taxes.

[Timber Loftis]

Originally Posted by John D Harris You remind me of my Lawyer brother-in-law who screams about the rich are paying enough when he makes more money then God. He's the very type of person he says should pay more in taxes yets he takes every deduction he can to pay less in taxes.

As long as our country is running a deficit there is no reasonable argument that we should pay lower taxes. None whatsoever.

Go over to that "world meters" thread and look at those mind-boggling numbers in the various spending programs. Common sense says you can't keep running that on borrowed money.

I wasn't really making this argument, so I don't know why you pounced on it. Attacking trickle-down is attacking the redistribution of wealth upwards to the rich. And, unlike me, the rich don't go out and spend that money - not all of it. They bank it for future generations -- which does nothing to help the economy.

[Timber Loftis]

Originally Posted by Felix The Assassin Doesn't this become an oxymoron? However, as a tax option I can see the light. Maybe a refinance (without equity distribution) is in order.

I left out some details. Let's just say that if you have a home equity line of credit and you pay it down, do not be surprised if the bank writes you a letter saying "your house isn't worth what we thought it was so we're reducing your line of credit."

And yes I did re-fi. Oh, and guess what -- the house appraised for what it should have, meaning their letter cutting my line of credit was based 100% on bullshit. It was all just bank asshatery for recessionary times. (There is a class action lawsuit against them for this going on as well.)

Back to the topic of deductions -- don't forget your charitable deductions, folks. Dig out those receipts from you Salvation Army drop-offs.

[VulcanRider]

Originally Posted by Timber Loftis Back to the topic of deductions -- don't forget your charitable deductions, folks. Dig out those receipts from you Salvation Army drop-offs.

And you can make a cash donation specifically directed for Haiti relief through the end of February and claim it on either this 2009 tax return or save it for next years. So if you file, say, this week, you could claim a deduction for a donation you haven't made yet. But if the IRS questions it you'd better have a receipt to show them later...

[John D Harris]

Originally Posted by Timber Loftis As long as our country is running a deficit there is no reasonable argument that we should pay lower taxes. None whatsoever. Go over to that "world meters" thread and look at those mind-boggling numbers in the various spending programs. Common sense says you can't keep running that on borrowed money. I wasn't really making this argument, so I don't know why you pounced on it. Attacking trickle-down is attacking the redistribution of wealth upwards to the rich. And, unlike me, the rich don't go out and spend that money - not all of it. They bank it for future generations -- which does nothing to help the economy.

so TL I take it from your answer you think you money disapears when you spend it? Oh and yes the rich do spend thier money, they buy companies.... instead of a buying some 2x4's to ad onto their house they buy the whole freakin' saw mill then the people who justed to own the saw mil buy what ever they want... and so on and so on... that's how the world works... so what if the rich buy a multi million dollar yatch.... that yatch doesn't build it'self. people are employeed to build that yatch.... trickle down read it and weep. when the rich buy land and put a multi million dollar mansion on it does the mansion just appear or do people employeed by the construction company trade hours of their life and their skills to build said mansion?

The only thing worse then lowering taxes right now is increasing spending and taxes. Taxes are right where they should be, spending is out of control. This spending freeze is a joke, there should be an across the board 10% spending cut nothing absolutly nothing spared. I know the numbers TL try over 1.56 this year debt, 14 trillion on the books debt, 36+ trillion in off the books debt, 106 trillion in unfunded liabilites and derivates (sp? for the snobs) All trying to be paid for with only 2.2-2.5 trillion in revenues. And we haven't even added the debt for healthcare, cap and trade, the new climate watchdog agency.

Whiskey, bullets and gold... whiskey bullets and gold.