Comments on: The Blessing of Income Tax http://moneysmartlife.com/income-tax-is-a-blessing/ Money Tips for a Better Life Tue, 16 Mar 2010 23:58:15 -0400 http://wordpress.org/?v=2.8.4 hourly 1 By: danny http://moneysmartlife.com/income-tax-is-a-blessing/comment-page-1/#comment-45262 danny Fri, 11 Jan 2008 19:12:30 +0000 http://moneysmartlife.com/the-blessing-of-income-tax/#comment-45262 You could look at it as a blessing OR you could look at it like the government as a legal band of thieves... You could look at it as a blessing OR you could look at it like the government as a legal band of thieves…

]]> By: kitty http://moneysmartlife.com/income-tax-is-a-blessing/comment-page-1/#comment-43495 kitty Mon, 07 Jan 2008 04:46:25 +0000 http://moneysmartlife.com/the-blessing-of-income-tax/#comment-43495 ..."absurdity of AMT"... Interestingly, because of the absurdity of AMT, in early 2000s a number of people with relatively modest incomes bankrupted themselves paying AMT. They worked for telecom or high tech startups that paid part of their (sometimes fairly modest) salary in incentive stock options. They exercised the options, but decided to hold on to stock for a year to get long term capital gains (perfectly find under normal tax - btw on Saturday I heard Suze Orman giving the recommendation to a caller to exercise ISO and hold on to stock for a year; how many people do know about AMT?). Then the company tanked, the stock became worthless, but they still owed huge amount of money to the IRS. I am sure they all feel blessed. BTW - I certainly am grateful that I earn enough to think about AMT (no, I don't have ISOs, just read personal stories when I looked into AMT) and I do see the point, and I don't mind paying taxes, but there is a lot of unfairness and stupidity in the system. …”absurdity of AMT”…
Interestingly, because of the absurdity of AMT, in early 2000s a number of people with relatively modest incomes bankrupted themselves paying AMT. They worked for telecom or high tech startups that paid part of their (sometimes fairly modest) salary in incentive stock options. They exercised the options, but decided to hold on to stock for a year to get long term capital gains (perfectly find under normal tax – btw on Saturday I heard Suze Orman giving the recommendation to a caller to exercise ISO and hold on to stock for a year; how many people do know about AMT?). Then the company tanked, the stock became worthless, but they still owed huge amount of money to the IRS.

I am sure they all feel blessed.

BTW – I certainly am grateful that I earn enough to think about AMT (no, I don’t have ISOs, just read personal stories when I looked into AMT) and I do see the point, and I don’t mind paying taxes, but there is a lot of unfairness and stupidity in the system.

]]> By: bill http://moneysmartlife.com/income-tax-is-a-blessing/comment-page-1/#comment-43486 bill Mon, 07 Jan 2008 00:49:36 +0000 http://moneysmartlife.com/the-blessing-of-income-tax/#comment-43486 I don't particularly like paying taxes, but I do because I'm required to. I do take exception to paying a higher percentage of my earnings. I think a flat tax we be more equitable. You still end up paying more if you make more, but the percentage is the same across the income spectrum. I don’t particularly like paying taxes, but I do because I’m required to. I do take exception to paying a higher percentage of my earnings. I think a flat tax we be more equitable. You still end up paying more if you make more, but the percentage is the same across the income spectrum.

]]> By: Tina http://moneysmartlife.com/income-tax-is-a-blessing/comment-page-1/#comment-43374 Tina Sat, 05 Jan 2008 03:55:50 +0000 http://moneysmartlife.com/the-blessing-of-income-tax/#comment-43374 Fortunate, I am glad you understand my point. Yes, I would LOVE to keep 100% of my income, and no, I do not always agree with how it is spent. But, I have been in the process of divorce, raising two small kids, and seriously ill all at the same time. I had no choice but to accept help from friends, family, and the government. Thus, I am VERY glad to be a productive member of society, supporting my kids, and paying taxes. (No politics involved-just a sense of gratefulness.) Fortunate,
I am glad you understand my point. Yes, I would LOVE to keep 100% of my income, and no, I do not always agree with how it is spent.

But, I have been in the process of divorce, raising two small kids, and seriously ill all at the same time. I had no choice but to accept help from friends, family, and the government.

Thus, I am VERY glad to be a productive member of society, supporting my kids, and paying taxes. (No politics involved-just a sense of gratefulness.)

]]> By: Fortunate http://moneysmartlife.com/income-tax-is-a-blessing/comment-page-1/#comment-43236 Fortunate Thu, 03 Jan 2008 15:31:55 +0000 http://moneysmartlife.com/the-blessing-of-income-tax/#comment-43236 I think some of you might be missing the point. Paying taxes stinks in many, many, MANY ways but I agree with Tina there is a positive side. I just "discovered" the absurdity of the AMT this year, for example. Why have I never heard of it before? Because I didn't make enough money to qualify. I am happy that I now make more money. I prefer to worry about the AMT than to worry about groceries. I think some of you might be missing the point. Paying taxes stinks in many, many, MANY ways but I agree with Tina there is a positive side. I just “discovered” the absurdity of the AMT this year, for example. Why have I never heard of it before? Because I didn’t make enough money to qualify. I am happy that I now make more money. I prefer to worry about the AMT than to worry about groceries.

]]> By: kitty http://moneysmartlife.com/income-tax-is-a-blessing/comment-page-1/#comment-43123 kitty Wed, 02 Jan 2008 19:13:48 +0000 http://moneysmartlife.com/the-blessing-of-income-tax/#comment-43123 PatrioticAmerican, we object because there is a lot of waste in government and very little accounting. All major corporations are audited to make sure the money aren't misappropriated and while fraud happens, when it is found, there are consequences. When was the last time we heard about the government hiring an accounting firm to audit that the money aren't misspent? Do we see anybody in government persequted for fraud? Why do we often get the reports of how trillions just vanished into thin air either in the military or in Iraq or somewhere else (http://benfrank.net/patriots/news/national/pentagon_missing_trillions)? How can money just vanish? Can you even imagine this anmount - to most of us it is just an abstract mathematical entity. Sure we want to support our soldiers. What we don't want to support is some general getting $640 toilet seats(some scandal some years ago) or a general taking a military plane on a nice ride to a wedding. A CEO who had $5000 shower curtains supposedly from company money is in jail. Why aren't people who spent $640 on a toilet seat in jail? Then there are things like farm subsidies which often support rich farmers and do nothing for the poor ones. Or government-subsidized insurance for (super) rich families who own ocean-front propreties. Or lack of competitive bidding for many projects that result in waste. Or purely made contracts with contractors that result in government spending money for substandard products. Here is another lovely link: http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2003/05/18/MN251738.DTL So no, I don't want to give money that are going to just disappear. PatrioticAmerican, we object because there is a lot of waste in government and very little accounting. All major corporations are audited to make sure the money aren’t misappropriated and while fraud happens, when it is found, there are consequences. When was the last time we heard about the government hiring an accounting firm to audit that the money aren’t misspent? Do we see anybody in government persequted for fraud? Why do we often get the reports of how trillions just vanished into thin air either in the military or in Iraq or somewhere else (http://benfrank.net/patriots/news/national/pentagon_missing_trillions)? How can money just vanish? Can you even imagine this anmount – to most of us it is just an abstract mathematical entity. Sure we want to support our soldiers. What we don’t want to support is some general getting $640 toilet seats(some scandal some years ago) or a general taking a military plane on a nice ride to a wedding. A CEO who had $5000 shower curtains supposedly from company money is in jail. Why aren’t people who spent $640 on a toilet seat in jail?

Then there are things like farm subsidies which often support rich farmers and do nothing for the poor ones. Or government-subsidized insurance for (super) rich families who own ocean-front propreties. Or lack of competitive bidding for many projects that result in waste. Or purely made contracts with contractors that result in government spending money for substandard products.

Here is another lovely link: http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2003/05/18/MN251738.DTL

So no, I don’t want to give money that are going to just disappear.

]]> By: Amanda http://moneysmartlife.com/income-tax-is-a-blessing/comment-page-1/#comment-43121 Amanda Wed, 02 Jan 2008 18:49:06 +0000 http://moneysmartlife.com/the-blessing-of-income-tax/#comment-43121 How much of a blessing would it be if you got to keep all of that increase in your income? The income tax is most assuredly NOT a blessing. Just remember, if the government can take 30% of your income, it can also take 100%. Don't bargain about inches of evil. How much of a blessing would it be if you got to keep all of that increase in your income?

The income tax is most assuredly NOT a blessing. Just remember, if the government can take 30% of your income, it can also take 100%. Don’t bargain about inches of evil.

]]> By: John http://moneysmartlife.com/income-tax-is-a-blessing/comment-page-1/#comment-43110 John Wed, 02 Jan 2008 17:32:36 +0000 http://moneysmartlife.com/the-blessing-of-income-tax/#comment-43110 I like income taxes for a different reason -- I actually like taking the time to fill them out. It's the one time of the year that you are forced to sit down and calculate exactly how much you've made in the last year. Then you have a written record that you can compare with in the subsequent years. It also makes me realize just how much money I have made and to compare how much of that money has ended up in my savings accounts versus how much of it I actually spent. Sure, I would rather not have to pay income taxes. But, I think sitting down and going through the process of filling out my taxes really helps me gain perspective of my finances. I like income taxes for a different reason — I actually like taking the time to fill them out. It’s the one time of the year that you are forced to sit down and calculate exactly how much you’ve made in the last year. Then you have a written record that you can compare with in the subsequent years. It also makes me realize just how much money I have made and to compare how much of that money has ended up in my savings accounts versus how much of it I actually spent. Sure, I would rather not have to pay income taxes. But, I think sitting down and going through the process of filling out my taxes really helps me gain perspective of my finances.

]]> By: PatrioticAmerican http://moneysmartlife.com/income-tax-is-a-blessing/comment-page-1/#comment-43100 PatrioticAmerican Wed, 02 Jan 2008 16:16:49 +0000 http://moneysmartlife.com/the-blessing-of-income-tax/#comment-43100 Paying taxes is patriotic. How is it that rich people have no problem paying dues for their country club, but they have a problem supporting a greatest police and military in the world? Just like Warren Buffett says, he could not have become one of the richest people in the world in a country like Bangladesh. Here are some great things you taxes pay for. - Education - Police (protection) - Waste Management (taking out your trash) - Social Security/Medicare - Roads and many more. People should stop whining about supporting for the greatest country in the world and PAY THEIR DUES! Paying taxes is patriotic. How is it that rich people have no problem paying dues for their country club, but they have a problem supporting a greatest police and military in the world?
Just like Warren Buffett says, he could not have become one of the richest people in the world in a country like Bangladesh. Here are some great things you taxes pay for.
- Education
- Police (protection)
- Waste Management (taking out your trash)
- Social Security/Medicare
- Roads

and many more. People should stop whining about supporting for the greatest country in the world and PAY THEIR DUES!

]]> By: Kris http://moneysmartlife.com/income-tax-is-a-blessing/comment-page-1/#comment-43082 Kris Wed, 02 Jan 2008 15:39:02 +0000 http://moneysmartlife.com/the-blessing-of-income-tax/#comment-43082 Yes, I tell myself over and over that it’s a privilege to pay income taxes in the US. Especially this year when my federal income tax bill exceeded my living expenses. (see link below) In the lower to middle class ranks, we have little tax incentive to make more money, because the more you make the more the IRS will take. It almost seems like a way of holding us back, keeping us down. I am not complaining, I have a very comfortable life. I am just making an observation. As long as you are working in the cubicle, you can never achieve escape velocity to burst through the middle class ceiling. http://thefinancialengineer.blogspot.com/2007/12/when-taxes-exceed-living-expenses.html Yes, I tell myself over and over that it’s a privilege to pay income taxes in the US. Especially this year when my federal income tax bill exceeded my living expenses. (see link below)
In the lower to middle class ranks, we have little tax incentive to make more money, because the more you make the more the IRS will take. It almost seems like a way of holding us back, keeping us down. I am not complaining, I have a very comfortable life. I am just making an observation. As long as you are working in the cubicle, you can never achieve escape velocity to burst through the middle class ceiling.

http://thefinancialengineer.blogspot.com/2007/12/when-taxes-exceed-living-expenses.html

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