Quote:
Originally Posted by RIJIMMY
Johnny - you're misinformed. This higher tax is NOT to get us out of the current economic situation, it is to FUND healthcare and other programs Obama is targeting. Its part of the budget, not the bailout. There is a general misunderstanding on how money works that the Dems capitalize on. Put your politics a side and hear me out.
Since you dont have kids, you dont see it, here is a brief overview. For hard working people that want a better life for their kids, In order to pay for college for their kids most people need two incomes in a family, thus they need some form of daycare to take care of the kids before and after work - cha-ching! Tens of thousands each year - AND THAT HELPS THE ECONOMY BY PAYING DAYCARE SALARIES, whihc means more tax for the governement!. A good thing.
Because the have two jobs, they make more money and thus pay more taxes, fair enough. But since they make more money, they get no benefits. If they make over 150K per couple (taxable income) they dont get to take the $1000 tax credit (and this is under Bush, not Obamas fault) . If you have 3 kids, thats 3000 of actual CASH you dont get! Lets say the Dad takes a big risk and starts his own business, his salary is now $200k per year. He works nights, weekends - he sacrifices for his family because he wants a better life for them. His wife still needs to work since sending 3 kids to college will cost hundreds of thousands of dollars. His wife makes 60k per year. CHA CHING - well guess what? That now means they make 260K per year. Hey! THEY ARE RICH!!! It doesnt matter that they pay daycare for the 3 kids, doesnt matter that the have to fund their childrens education. Now, they will pay more taxes! And not just a higher rate. Their itemized deductions will be reduced, thus raising their taxable income ! Bottom line - by trying to fund their own life, they get screwed.
So -you ask how then do we fund government initiatives? How about helping this family? How about more money (ie; their OWN money) in their pockets so they can take their kids to Disney (helps the economy) take the kids to Chuckie Cheese (helps the economy) open a 529 to save for college (helps the economy) enroll the kids in gymnastics (helps the economy) , buy a new volvo (helps the economy) take the kids to a science museum (helps the economy)
See what Im saying. This is no politcal rhetoric, no Limbaugh replublican crap. Its the opinion of someone who works with people like this and who see these situations all the time.
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RIJimmy, none of this is new information to me. I know how child tax credits work and understand the costs involved with raising a child to 18y/o ($170,460 including child care) and sending one to college.
However, I refuse to accept that the average family with 3 kids and over $250k total income is struggling to raise their kids, put food on the table and send their kids to college. I refuse to accept it because my single mother, who doesn't even have a High School degree nor has ever had anything handed to her always put food on the table and sent me to college. I also know of 2 different families (one with 3 kids and one with 4) that has a combined income over $200k and both families have sent all their kids to college.
As I have said in many other posts, people making that kind of money who have been *responsible* with that money should not be struggling. That means not buying the biggest house they can buy, the wife not going for facials or pedicures every month and the husband not owning the biggest boat fully outfitted that he can buy.
I have met quite a few people who at first look you would expect are extremely wealthy. But in actuality even though the husband makes $200k/year, they live paycheck to paycheck. I also know people in this category that are going to lose their house. They bought the absolute biggest house they could afford on an ARM and then eventually couldn't afford the payments - missed payments on the car, truck and house and are now in foreclosure. I don't feel bad for these people - they have completely over extended themselves without any safety net by living above their means.
I'm also an opponent of people being rewarded for having children. Now, I know that is easy for me to say right now not having any, but I think it is completely irresponsible for anyone to not take steps to avoid pregnancy unless they can afford a (or an additional) child.
Now, I don't think higher earners should be paying taxes out the a*s forever, but I do think the money has to come from somewhere. I was never a fan of Bush's tax cuts and I have always been a proponent of rolling them back. My opinion for the last two years has been that those tax cuts will be seen as the starting point for the current state of the economy.