Here's why our tax system stinks!

my boys could swim

My wife and I both teachers, have always gotten refunds for our taxes. I mean, we don't make much money, right.

Until last year. Somehow last year we had to pay in $700. I was incredulous at the revelation. So was my wife, so we talk to some people about it, and a coworker of my wife reccommends her accountant to us.

His nickname is "Cheater Charlie" :!:

So my wife goes to "Cheater Charlie yesterday, and guess what? We are getting back over $1,000!

So basically we paid twice as much money for our accounting fees(he charged $150 and was done with our stuff in @ 20 minutes) to get an accountant with some cajones, and we get a bunch back.

Our tax system is screwed. I really think we need to look at the old Steve Forbes "flat tax" plan. Get rid of all the write-offs.

crazy cat lady

Frightened Inmate #2

What did he do differently this year than you did last year?

my boys could swim

Gone Fishin

Coach.. The biggie for you this year is the child credit. That alone knocks $600 off the tax load for each child. I'm guessing last year's accountant didn't take the new bambino into consideration. Very Happy

Queenie

It would be much quicker and easier to tell us the reasons why our tax system DOESN'T suck rotten eggs.

Frightened Inmate #2

Member

Member

[quote="prohemp]hopefully cheater charlie does not live up to his name, otherwise keep your fingers crossed till April 15th, 2006[/quote]

You want to make some pretty detailed notes about what ol' Charile suggested and keep them with your copy of your tax return.

my boys could swim

He made a bunch of deductions for mileage for my wife's college courses, charitable donations (did you know giving clothes to goodwill counts?), he also took out some expenses for our jobs.

I knew about the additional child credit. (i'm not stupid.)

Take away that $600 though. And that leaves us with an $800 return (I took out his expenses off the top). Now, our financial situation has not changed much at all. So, from paying in over $700 to getting back $800 (not counting the extra child credit), that's a $1500 turn around.

I do not do my own taxes for the following reasons.

1. I don't have time.
2. I am not confident in my abilities to do my own.
3. It is well worth it for me to have someone else do this task for me.

Also, I want to interject that I have in-laws(wife's sister and husband) who make over double what we do, and they recieved money back last year.

Let's face it. The system is screwed. It's set up to punish the middle class.

Frightened Inmate #2

Excelent

Last year I did mine then took them to a preparer to be double checked. Only got a few more deductions. Difference in the refund from what I got and what they got was only 50 bux.

I prolly do them myself again. Mine are pretty simple, no complicated forms.

Member

Coach--your in-laws no doubt paid alot more in.

Is it just me....accounting was "not" my best subject and it's been awhile.....but isn't it "not" good to get a sh*%-load back? Doesn't it mean that throughout the year you paid way more in than you should have, thus someone else is making interest off your money besides yourself. The concept kind of hits you when you are self-employed.

Hey, I'm all for flat tax! Nice concept.....but when you realize that the richest people pay the most taxes....you know it won't work.

ie John Poor $20,000/yr John Rich $1,500,000
flat tax of 30% = $51k

figurative current system:tax Mr. Poor at 20% and Mr. Filthy (I mean, Rich) at 40% = $64k
diff= 13K, not including the interest.

Member

Coach,

I'm not disagreeing with you that our tax system is in need of repair. However, it's unfair to compare your realatives and how much they get back from the government and what you get back from the government. As I'm sure you know, how much you pay into the federal government is largely under your control by how many deductions you want to take. You want a big paycheck in April? Take zero deductions. Want to use Uncle Sam's money during the year? Take lots of deductions (though of course you have to be careful here, especially if you're self employed).

Your relatives could have taken very few deductions. If you want to look at issues of fairness, you should compare how much they make vs. how much they had to pay total to the government for the year, and then compare those values to your own.

Adjunct

give me a flat tax across the board with mortgage dedcutions and charitable contributions and be done with it all. No higher taxes.

That or a national sales tax period and no income tax at all. Rich people buy more so they would pay more tax.

Here's why our tax system stinks!

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