After Taxes

[bobm]

My wife works for the Federal Government, the IRS, and I have been retired from ranching for 4 years now due to drastic reduction in the value of horses ( like 90% due to bleeding hearts stopping horse slaughter in the US ) vs. cost increases in feed , Vet. , workman's comp, liability and ranch insurance costs, tas increases , as well as every other cost increase. She , has not received an increase in pay for the last 6 years, as well as everyone else at the IRS but a huge increase in work load due to NO new hires to replace retirees for 4 years. Last year, I had a minute increase in SS benefits by $8 / month. This past year, I had to take a small portion of IRA distribution due to one fund's maturity of $ 1,500. Then there was the always annual increase in property taxes ( insanely high ) PLUS an added FEE for fire protection on our ranch for the last 3 years ( county / rural properties only but NOT for the cities ). Then another property tax increase on our home in Wash.. The ever present sales taxes. Not to mention the ever increases in natural gas and electricity utilities and gas for the 7 year old car , not to mention the HUGE cost of the water bill ( we live in a high rainfall area of the country, so go figure ). Then the increase in cell phone , house phone, TV, and computer bills by 40 %, automobile license fees, and just about every other tax and purchase price , and insane interest rates on credit cards. We also have to pay Oregon Income Tax because my wife works in Portland, Oregon but we live just across the Columbia River in Wash.. We had to move here due to my wife take a job transfer or lose job due to department shut down ( Oregon has insanely high property taxes so that they can have no sales tax . Wash. has a sales tax so lower property taxes) So, we now have to add another $2,511 to our Federal Income Tax above the withholding amount because we just achieved a higher tax bracket by $ 1,000 so are now considered "wealthy " and now we can afford more " PAY OUR FAIR SHARE " taxes . Hey bleeding hearts in the Government ... We HAVE BEEN PAYING OUR " FAIR SHARE " ALL ALONG . Now , we just CAN'T AFFORD ANY MORE " FAIR SHARE " TAX INCREASES !!! Compared to the last 5 years and now last year... Our purchasing power has DROPPED like a rock and we are going broke fast. For the last 5 years we shop only sales, I am remodeling our former bank owned badly neglected home with mostly reused and repaired removed items and/ or buy used/ donated items from "Restore" , excess items given by neighbors, or Craig's list , so no time or energy to maintain a garden at the same time, buy food in bulk , haven't been out to dinner for over a year ( that we paid for ) and haven't seen a movie in a theater in years. I guess that I will have to do some pan handling at one of the off ramps with a sign " HUNGRY AND HOMELESS, ANYTHING HELPS " that we see daily all over . Thank you bleeding hearts ! So, what are your financial experiences in this time and age ?

 

[Smart Red]

We are both on fixed income. Spouse has SS (and an IRA that lost half during the recent depression/recession). I have SS and an equal amount from retirement income. We also have 8 rental units (three buildings) that have had basically the same income for the past ten years.

You are correct about everything going up in cost. Food, energy, taxes, fees, goods and services are all higher while income remains stagnant. Fortunately, we have scrimped and saved through our working years to provide for our retirement years. Then the interest rates fell and savings income dropped to nothing.

During our working years we both worked full time with weekends and time off spent rehabbing apartments. No movies, no vacations, no drinking, not much socializing at all since we were apt to be working somewhere most of the time. No new clothes, new cars, new furniture since our needs were few and centered on helping our children and pleasing our tenants.

We are comfortable. We are reasonable safe and secure here. Life is good only because life is simple and we have enough -- enough with a little bit to spare/share. Here's hoping when our time comes we both pass swiftly and peaceably, because that's our only chance to pass anything on to the grands. In spite of insurance, one big or prolonged illness and everything will be gone for bills.

Isn't this a pathetic, depressing discussion? Thanks a lot, @bobm!

 

[seedcorn]

In-laws when alive saw their propery taxes raised due to new housing (had to pay for the rich to have their own 'burbs). When they went in to complain as they had done no new remodeling to raise the value of their place, they were told: If you can't afford it, sell out and move to where you can afford to live.

 

[Lavender2]

In-laws when alive saw their propery taxes raised due to new housing (had to pay for the rich to have their own 'burbs). When they went in to complain as they had done no new remodeling to raise the value of their place, they were told: If you can't afford it, sell out and move to where you can afford to live.

That is sad, but I have heard politicians say things like that.
Sad, that people who have funded and supported the schools and community (for decades, possibly) are taxed out of their homes. Expenses have gone up for schools and services also, but tax burdens on seniors with a fixed income is an appalling flaw in the system...at least in some states.

 

[seedcorn]

Farmers over here are being asked to double their land taxes. To point taxes are more than land rent was just a few short years ago.

Worst part most farmers are (on average) are g'parents age, not parent age. Plus now their income will be less than half of what it was.

 

[Nyboy]

I am a big believer in public schools. But I do feel not having children , I shouldn't pay the same school taxes as someone with 4 kids in school.

 

[bobm]

I am a big believer in public schools. But I do feel not having children , I shouldn't pay the same school taxes as someone with 4 kids in school.

Now now Nyboy ... remember that the bleeding hearts say that you have to pay your "fair share " of taxes ! Also, why are you trying to burden the person with 4 kids by having them pay more taxes then you ? That is limiting their reproduction rights ??? Priests and nuns have taken a chastity and poverty oaths and they have to pay their "fair share" of taxes too after all.

 

[bobm]

Here in Washington, there is now a debate in the State Legislature to raise the minimum wage from $ 9.47 / hour to $12.00 / hour. Well lets see ... $12.00 -- $ 9.47 = $ 2.53 / hr. x 8 hours = $20.24 / day x 5 days = $101.12 / week x 4 weeks = $ 404.48 / month. x 12 months = $ 4,853.76 / year OK , lets pick on Nyboy and ask him ... since he has a successful dog grooming business what he would do in this scenario of having to have a new mandated increased expense of $ 404.48 per month or an extra $ 4,853.76 / year x how many employees for the same amount of input labor ? As a business owner ... Is HE willing to take a business / personal pay cut of almost $5,000 per employee per year or is he going to raise his prices on his services to cover the $5,000 mandated expense but no increase in his productivity but possible loss of business to competition if he charges more ? Lets say that I own a Lab x Poodle x Lassa Apso x ? mutt with long curly mated hair that desperately needs a shampoo, hair coat cut for the heat of summer and a toe nail trim and nails done . Seeing my financial downturn in purchasing power due to fixed income as well as huge increase in "fair share " taxes upon taxes ... will I be willing to pay an inrease in Nyboy's service fees or go elsewhere or do nothing but let the dog suffer from the up- coming summer heat or return this dog to a rescue where it came from ? Then going further ... now if Nyboy raises his prices and I pay his increased fees, I will be in a situation of having even less in purchasing power as well as more customers being in a similar situation. Now , he will face the situation of loosing business income resulting in a loss of his purchasing power or lay off a employee or even more employees who will have no income and will have to turn to unemployment then / or welfare. Who wins ?

 

[Smart Red]

Who wins ?

As always, THE GOVERNMENT!

It is difficult to remember, at times, that we are supposed to be the government. So much tax money seems to evaporate before getting put to [good] use by the executive branch. So often feel-good legislation results in the unintended consequences that we in the middle class have to live with.

I heartedly agree with Thomas Jefferson's opinion, but my revolution begins and ends in the garden.

 

[Lavender2]

I think schools should be fully funded and prisons should have to hold fund raisers and beg for donations from Target.

It doesn't really seem fair, @Nyboy , when you look at it realistically. But everyone benefits from an educated population. We pay taxes for prisons, air travel, etc... lots of things we may not directly benefit, but how would we be without them or enough money to support them?