I just finished doing our 2009 federal income taxes. I knew from the start we'd have to pay since my husband got a new job at a higher salary. But, I didn't know we'd have to pay 'cause the government "gave" us a tax credit. It is another of those gifts that keeps on giving … back to the government!
I'd heard some complaints about how the "tax credit" was raising some people's taxes or reducing their refunds, but thought it must be due to some error they'd made. It just made no sense that you would receive a tax credit and have it cost you money. That's not what credits are about. But, that is exactly what this one seems to do!
I was happily (okay, not so happily) humming along figuring our taxes in an online tax program. Entering our W2s, 1099s, deductions, and such. We were going to have to pay, but not so much as I'd feared. Then, it came to the "Making Work Pay" portion of the form and suddenly, after I'd answered the questions and entered the info, our taxes due went up by around $250! Excuse me? How was this putting money back into our pocket?
Needless to say, I was upset at the outcome. I am even more upset after doing some research about this so-called "tax credit". Apparently we got zapped with the extra tax because my husband is a disabled retired military veteran receiving VA disability pay and military retirement pay/pension. Huh? How does that figure to be fair? He are a disabled vet so the government is going to penalize him for his service? Plus, we now have to hope we do not get hit with penalties due to withholding underpayment of taxes. This just gets better and better!
And, apparently there were indications from the get-go that this was not a good idea. The Treasury Inspector General for Tax Administration reported that millions of taxpayers may be negatively affected by the reduced withholding associated with the Making Work Pay credit. TITGA estimates that more than 15.4 million taxpayers could unexpectedly owe taxes on their 2009 returns because of the credit. Just another way Obama continues to bless us with his economic stimulus package. The IRS tried to fix the problem, but as many of us have found out or will find out, their "solution" t didn't actually work.
I'm sorry, but I think our tax code is what needs to be fixed. In fact, I think our whole tax system needs to be seriously overhauled. When it becomes so complex that the people in charge can't even figure out what is wrong or what will work, it needs to go! We need to go to something simple. Whether it is a flat tax, a fair tax, a national sales tax, or something else that is relatively free of loopholes, it needs to change. Talk about change we can believe in. This would be one for me!
Of course, I think the ideal solution would be to eliminate income tax altogether. Send the IRS and most of the federal government home to find real jobs. Clean out the next of DC political vipers and scale it all down to something manageable. Does anyone really know how much the IRS and the excessive federal government costs us? If we took away their virtually unlimited bankroll, would there be so many all that anxious to "serve"?
I don't think we need most of the things the federal government currently provides. A lot of them should be handled at state, local, and personal levels. Federal income tax was once found to be unconstitutional, are we sure that it really isn't so? Despite the constitutional amendment?
I want the federal government to protect me from foreign enemies. I'm not sure what else I need from them. I suppose a little bit of overlap between federal, state, and local when it comes to roads and commerce. I think they should keep their federal noses pretty much out of business, environment, education, marriage, medical, and many other areas that need to be handled by the state or local governments.
If the federal government wasn't sticking its fingers into every pie on the rack, would they need so much money? If they wasted less money, wouldn't we be able to pay less in taxes? Wouldn't that be the real way to put more into the pockets of citizens? By not actually taking it out in the first place?
Let's remember this little glitch when we vote in 2010 and 2012. Making Work Pay Credit: the Obama tax credit that cost us more money in our taxes. Another bit of hope and change courtesy of the Progressives. I guess I am just really hoping for changing them all back into private citizens before they change us all into hopeless citizens. Vote for common sense in the next elections. Whether at the local, state, or national level. Send the Progressives home! Choose the candidates that have real American values. The people who will truly work for us in government. The ones who will believe that the will of the people is something they need heed!
© Suzann C. Darnall, FEBRUARY 2010