Interesting take on taxes

[Bubba]

Originally Posted by Outofdodge

Correct

What holiday is 4/16/07???

[Outofdodge]

Originally Posted by Bubba

What holiday is 4/16/07???

Emancipation Day.

Even though it is not a federal holiday, it is a holiday for the District of Columbia and rather than have separate due dates for the rest of the US vs the district, your friendly IRS decided that everyone would get an extra day.

[Bubba]

Who got Emancipated on this date?

[Outofdodge]

Originally Posted by Bubba

Who got Emancipated on this date?

Certain Slaves in the District of Columbia only. (no idea why it is just certain and not "all"). Other than these certain freed slaves also got compensation from the Treasury, this is the extent of my knowledge of this particular holiday.

[Detector]

Just an observation, but it seems our tax system is way out of whack. It seems to be a "redistributing the wealth" program. We are rewarding people for being poor, and very rich, out of the pockets of middle America.

The government says we have record refunds this year but didn't mention some record pay-ins by Mr./Mr's. average American. I've seen people getting refunds of over $6,000 and others paying in as much as $9,000.

After paying in, again, last year I was told I need some deductions. I raised my 401k contribution, bought a house and increased my withholding only to end up paying in even more this year.

[moises1]

Ho Hum!

[lurker]

Not trying to ding'ya Detector; but me-remembers a taxpayer funded house lottery that helped you gain ownership of your casa.

[Highwayman]

Originally Posted by Outofdodge

You aren't being kicked in the ass and you should be patting yourselves on the back. Provided you are pre-paying 95% of your total tax bill or paying more than the previous tax year total, Uncle Sam just gave you another interest free loan. Try and get that from your local bank.

This is a good example of the difference in mindsets from opposite sides of the political spectrum. I would never have looked at unpaid taxes as an interest free loan from Uncle Sam. I have for over 30 years looked at overpayments as an interest free load to Uncle Sam.

We see the same mentality with tax cuts. Democrats ask how a tax cut going to be paid for but never ask if the taxpayer can afford a tax increase.

[Outofdodge]

Originally Posted by Highwayman

This is a good example of the difference in mindsets from opposite sides of the political spectrum.

I think it's more a function of our careers instead of our veiws on the political spectrum. I work with money. Second only to have less outflow than you have inflow, the best way to build wealth is hang on to your money as long as you can before letting it go.

Never pay a bill before it's due and that includes the IRS, don't use your bank's online bill paying service, and only use a creditor's individual web based payment system if it lets you attach a payment date to the payment

[Outofdodge]

Originally Posted by Detector

It seems to be a "redistributing the wealth" program. We are rewarding people for being poor, and very rich, out of the pockets of middle America..

Where have you been dude? It's been that way for an awfully long time.

Originally Posted by Detector

The government says we have record refunds this year but didn't mention some record pay-ins by Mr./Mr's. average American. I've seen people getting refunds of over $6,000 and others paying in as much as $9,000..

What people get in refunds or end up paying is not so much a function of the tax code itself but a function of how people paid during the year. You are required to pay the lessor of 95% of your total tax bill or an amount equal to your previous year's total federal income tax bill prior to this year's due date (4/17). If Jane Doe has to write Uncle Sam a $2,000 check on 4/17, it's not because the code's out of whack, it's because Ms. Doe's interim payments (with holding and quarterly estimated payments) were $2,000 less than her total bill.

Everyone's situation is different but if things are stable in the Detector household year to year in terms of salaries and deductible expenses, then your tax preparer or any of the tax prep softwares (turbo tax, taxcut) can help someone forecast their next year's tax bill and help them plan for it.

Hint-the biggest cause for this situation in the *average* American taxpayer's family is large investment returns or a multiple income family where there is a large gap between the pay of one spouse against the other.