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Sunday, February 24, 2008

Yippee!!

Our taxes are done! Our taxes are done! Many, many pages of taxes are ready to be mailed (it was a year of many details). It could have been printed and signed sooner, but a certain bank was 23 days behind me, after being granted an extension on releasing earnings statement by the IRS.

My husband asked me about 20 questions and has signed on the dotted line. I have explained and tied every number on every schedule and every worksheet to the 1040 and State form satisfactorily. All supporting evidence is sitting in the file cabinet safe and sound.

The year's year interesting tax note: We owed less federal tax (excluding employment taxes) than we owed in state tax to the People's Republic (the nickname our state of residence deserves). That will probably change next year. I'm hoping the impending change will be unrelated to the election. But, with an election ahead, I can see both bills going through the roof r"l.

Another note: Our total tax bill (federal, state, and employment taxes) was approximately equal to ONE single high school Yeshiva tuition. Considering we spent 20% of the year working to pay these taxes, I think this is a scary commentary.

But, I'm in a good mood. So, I'm just sharing my joy.

9 comments:

Zach Kessin said...

I expect taxes will have to go up just because the next president will be stuck paying for the wars in Iraq, afganistan and a lot of tax cuts. President Bush seems to have run up a huge credit card bill for the US.

Anonymous said...

And how exactly would raising taxes bring in more money?

I'm no fan of President Bush (can you tell the difference between him and Nancy Pelosi because I sure can't), but if we need to cut spending, why start on defense (a legitimate function of the government). I'd start with the NEA and Dept of Education...

FYI--if you don't think you pay enough in taxes and want them raised, you can give unsolicited donations to the public debt without having to slow the economy with new tax burdens:
http://www.treasurydirect.gov/govt/reports/pd/gift/gift.htm

Zach Kessin said...

Well if you look at the federal budget you will find that the war in Iraq goes threw the amount of funding used by the NEA in a few hours. If you are going to cut the budget you start with the heavy items.


I live in Israel, I don't pay US Taxes

Mike S. said...

Half way through. Need 5 federal and 6 state returns. Still missing 1 K-1. getting slammed by the AMT. Would help the family if I could stop claiming my two oldest as dependents, but would mess up health insurance. Gaak!

Anonymous said...

it has been shown every time that when the taxes are lowered the goverment brings in more money

even with the wwr spending, with the bush tax cuts, the treasury has more money that it has before the tax cut was made.

and it has allowed the us to go more towards a balanced budget.

Dave said...

By your logic, Anonymous, we could cut the tax rate to zero, and our revenues would soar.

The facts are that this simply isn't the case. What you are referring to is the "Laffer curve", which is the point at which increasing taxes decreases revenues.

So, if the tax rate is to the right of the Laffer curve, decreasing the tax rate will in fact raise revenues.

The tax rate hasn't been there for over a generation.

According to Peter Orszag, director of the Congressional Budget Office, the Bush tax cuts have a net result in 2007 of a decrease in revenue of "roughly $195 billion to $215 billion".

Given that the budget is seriously in the red (and that the compounding interest on that continues to skyrocket, out of every dollar raised in taxes, 20 cents is spent on servicing the debt, up from 18 cents in 2002), there isn't another option.

If you live off of Credit Cards, and only pay the minimum, eventually, the debts come due.

When the government lives off of Credit Cards, eventually the debts come due. The current tax cuts are nothing more than a deferral to the next generation. Hardly a generous or responsible act.

Ariella said...

Good for you. I haven't even started on the tax return yet, as I have been embroiled in getting the spring issue out. One advertiser is still delaying me when everything else is set to go. After that is off to print, though I really have to get my forms done. We have the extra joy of preparing a second state return, as my husband's employer sees fit to send him to NJ half the time.

miriamp said...
This comment has been removed by the author.
miriamp said...

We have to do two state returns too, as my husband works in the state we used to live in, not the one we currently live in. But RI is too generous, and gives us a credit for the tax paid to Massachusetts, so we end up sending in a check to RI for some number under $10, (the amount of the total state tax bill -- employer only withholds for MA).

Federal is done, (he wanted the refund!) and the states still need to be done, but my husband will do that (while I watch and check his math over his shoulder, lol.) IY"H soon.