Hijacking Incentive Since 1913
I was reminded today of how much I hate taxes so I thought I would come here to cry about it. 🙂 My wife had to meet with Human Resources this morning for her new job and they informed her that the $2,000 bonus she is to receive will get hit by taxes to the tune of 38%. WHAT!!! Out of $2,000 we are only going to see $1240? (Counting to 10 to gain composure.)
…8, 9, 10. (Deep Breath) You mean to tell me that the Government needs to misuse and blow $760 just because it is a bonus check? 15% isn’t enough? Right now we are on the borderline of the 15% and the 25% tax bracket. Actually once my wife starts her new job we will be in the 25% tax bracket. In 2008, if you make $357,700, you will pay 35%. So why in the world would the Government feel the need to tax her bonus at 38%?
…8, 9, 10. (Deep Breath) I HATE the fact that the very people who vote on their own salaries, health care, and probably many other beneficial things have decided that we do not pay enough taxes already. The big question is this: Would we benefit and prosper if we were able to use that money the way we see fit? Absolutely!!!
…8, 9, 10. (Deeper Breath) Most of you know that it would be used to pay down our debt. Wouldn’t that help us in these trying times? Would it help us absorb some of the pain at the pump? Couldn’t we use this money to fund our sinking fund for the rest of the year and then some? Grocery prices are high, and it would sure relieve some pressure there. The bottom line is that this money could help us and if we had $1700 left instead of $1240 couldn’t we “stimulate the economy”? YEP…stimulate our own economy that is!!
Should the Government tax incentives?
My problem with “income” taxes (besides being declared unconstitutional by the Supreme Court in 1895) is that it is going into the greedy pockets of people who have no idea how to spend it. We are unable to fully benefit from our hard work which in reality kills incentive. When you kill incentive you create the need for failed programs that do not deliver on their promises. When someone receives a bonus of any kind it is usually because that person worked very hard to earn it. What is the motivation to work that hard when Uncle Sam is going to take more than a third of it?
My wife worked VERY hard and sacrificed a lot of family time and personal free time to accomplish something that would enable her to HELP people.
What about the hardworking poor?
If you make 0-$16,050 you are taxed at 10%. 10% doesn’t sound like a lot but when you only make that much money it is a lot! That $1600 could go a long way if it was managed properly by the person who worked so hard to earn it.
If we were not taxed so heavily we would all be in a better position to help LIFT UP those around us that need a helping hand. Giving would be on the rise and quite possibly saving. At the current -2.2% that Americans currently save, it would take more than a tax cut to really matter but you get my point.
I believe in the private sector! I believe that if people had more of their own money they would be more prosperous! I believe that they would GIVE more, save more, and even spend more! More jobs would be created! More businesses would be started! Debt could be eliminated faster! People would quite possibly borrow less because they would have less of a need to. <~~(Theoretically) There is where the true incentive lies, not in the Government handouts and mismanagement of our tax dollars. People need to do for themselves and they could if they didn’t face disincentive at every corner!!
The GOVERNMENT needs a Total Money Makeover! America needs a Total Money Makeover! If we had more, and spent less what could we do for mankind?? A FLAT TAX could pay for the NEEDED items in the budget and maybe, just maybe, Washington would be forced to control their outrageous overspending! (I’m just dreaming now!)
Ahhhh…..now I feel a little better! Thanks for listening to my rant!! 🙂
FOUNDATIONS, Freedom, Peace, Purpose, Prosperity
**UPDATE: After writing this blog I have been told by multiple people that the Government takes more from bonuses to offset the chance of being owed money at the end of the year. So basically if I understand what I have been told, we will receive a bigger tax return next year. That’s good to know but it still doesn’t help us now. I don’t want to give the Government an interest free loan. Don’t loan the Government money. Make sure you adjust your tax withholding worksheet so that you do not get a huge return.
The income tax is a farce, and I hope that one day we will be free of them. There are other ways to bring in revenue to pay for infrastructure whether state or federal. Sales Tax, Gas Tax, and Tobacco Tax to start with. One way to eliminate the income tax without doing it all at once would be to CUT WASTEFUL SPENDING from the already bloated budgets of our city, state, and federal Government. Once these things are cut, you would cut taxes permanently by the cut amount. We need to give people more of their own money so they can use it to start businesses, pay for better education, give to helpful causes, and enjoy the fruits of what being an American really means. The freedom to prosper!