posted on March 24, 2007 08:32:08 AM new
I just did my taxes, and I just got REALLY screwed. I had to buy a car last year, and I got a new Honda Civic GX. You get a $4000 tax credit when you buy one new because it is so much cleaner than the others (it is a Compressed Natural Gas car, Fuel is $2.14 right now, and $1.25 if you get the unit to refill it from home).
Well, I went to my guy to do my taxes yesterday and because we did unexpectedly well on some investments, I came within $100 of the Alternative Minimum tax. Because of that, I lost my $4000 tax credit.
posted on March 24, 2007 09:39:43 AM new
"I got a new Honda Civic GX...Fuel is $2.14 right now, and $1.25 if you get the unit to refill it from home... we did unexpectedly well on some investments."
Let's see, I used the 2005 tax money to pay for cancer treatments for my husband (or he would have died) so I had to set up payments for that one.
Then, of course we couldn't pay 2006 taxes on time because he didn't work for 3 months and we lost most of our business.
Now, I owe them $12,000+, have no "good" investments or health insurance or money in the bank. (I realize that is my problem and the result of poor decisions along the way, so no criticism needed)
BTW I'm paying $2.89 a gallon for my gas so that savings alone should more than pay for the car.
Sorry, but tax credits for anyone but the working poor are a major pet peeve of mine! Most seem to benefit those who make the most.
A friend of mine got a huge tax credit (or deduction...they lost me when they started talking about it all) just for buying a HUGE SUV that weighed over so many pounds. Let's see, wastes gas, polutes the environment, rough on the roads, etc and they got a tax credit???
posted on March 24, 2007 01:26:43 PM new
The Alternative Minimum Tax has finally been making the news. I've been subject to it for years (being in a high-tax state (NJ)), and was astounded that nobody seemed to mention the obvious. Bush has touted his tax reductions, but they barely affect those of us in the AMT. I wasn't in favor of tax cuts in the first place, but it is a scam to pretend that they're for anyone other than the rich (and I mean VERY rich). The middle class (and lower upper class) have been f***ed.
posted on March 24, 2007 08:21:23 PM new
Well Max my husband and I certainly do not fit into either of those RUSH >>> TOP categories...I GUARANTEE you it costs me more loss of sleep and anxiety to try to come up with the money to pay US taxes every year than the top 55% you say "pay so much". When you make millions or even hundreds of thousands you can play, "invest and hide" alot eaiser and more successfully than the rest of us. It may "hurt" them to write the check but they need to thank GOD almighty that they have the money to cover the check and not have to worry if they can still pay the house payment after they pay the goverment!
posted on March 25, 2007 05:56:18 AM new
"RUSH >>> TOP categories" = "Republican spokesman druggy criminal LimpBalls"
Rush Limbrains wouldn't know the truth if it slapped him in the face... talking is his best listening and understanding is not in the lexicon
[ edited by bjboswell on Mar 25, 2007 05:58 AM ]
posted on March 25, 2007 10:55:27 AM new
Thanks for the reality check and a bit of perspective, My favorites.
Neatstuff, the cost benefit of having the CNG car is somewhat offset by the higher price (after the tax credit) and the high maintenance (there are fuel filters to replace and basic maintenance can only be done at the dealer, which is more expensive than going to a normal garage, to say nothing about the limitations of being in a Non-traditional fuel car when the car needs gas).
I try to run my life logically, I try to check the cost-benefit of my actions, investments, and purchase decisions. I was supposed to get the credits because I agreed to get a car with higher maintenance and initial expense, that also was 98% cleaner than the typical Hybrid car and uses Domestic Methane and not imported oil based fuel. When all is said and done, this car was going to have to last between 200,000 to 250,000 miles to pan out. As it stands now, it will probably be about 500,000 miles to break even.
posted on March 25, 2007 11:49:15 AM new
Ok, so you don't like Mr Limbaugh. That doesn't mean his figures are wrong. I Googled Who pays taxes and came up with a number of sites. They are all the same. http://www.ntu.org/main/page.php?PageID=6
posted on March 25, 2007 12:10:20 PM new
Sorry, max, it's common knowledge that bush gave the richest 2% of America the BIG tax breaks.
The middle class got very little and then property taxes went UP and various fees went UP (or were CREATED) to compensate for less tax money comimg in.
posted on March 25, 2007 12:36:53 PM new
Common knowledge
From Wikipedia, the free encyclopedia
Jump to: navigation, search
For other uses, see Common knowledge (disambiguation).
Common knowledge is what "everybody knows", usually with reference to the community in which the term is used.
The assertion that something is "common knowledge" is sometimes associated with the fallacy argumentum ad populum (Latin: "appeal to the people". The fallacy essentially warns against assuming that just because everyone believes something is true does not make it so. Misinformation is easily introduced into rumors by intermediate messengers.
There are many things which many people believe to be true which actually are true. Sometimes the assertion that something is "common knowledge" is merely another way of saying that someone is ignoring an obvious fact, or should have known about it had they been paying attention.
Many techniques have been developed to overcome the problem of distinguishing truth from fact in matters that have become "common knowledge". The scientific method is usually applied to the general laws of nature. In legal settings, rules of evidence generally exclude hearsay (which may draw on "facts" someone believes to be "common knowledge". To avoid undue influence from publicity on the neutrality of a jury, judges occasionally must order a change of venue. Journalists and other investigators of truth may seek a source closer to the facts, eliminating unreliable intermediaries
posted on March 25, 2007 12:51:50 PM new
max, perhaps it would be more realistic to look at what percentage of total income is paid in taxes by individuals. I think you'd find that those at the bottom of the income scale pay a higher chunk of their total income, which many of them can ill afford. Sure, wealthy people pay more taxes overall, duh. But what portion of their total income do those payments represent? A little equity would go a long way.
Taxing productivity (work performed) makes no sense anyhow. We ought to tax runaway spending instead. A national sales tax could end this nonsense.
posted on March 25, 2007 01:23:50 PM new
What the Limbaughs and others always do is restrict it to INCOME taxes rather than including all PAYROLL taxes. Since Social Security and Medicare amount to 6.2% (and if you count the employer's contribution, which otherwise could be going to wages, 12.4%) but are capped at $97K of income, they are a trivial matter to the highly compensated, but a serious tax on the less well-to-do.
... and that's money right off the top, with no deductions, exemptions, credits, etc.
Where are the stats about who pays the payroll taxes?
posted on March 25, 2007 02:33:19 PM new
I'm sorry dejapooh. I know that sucks when you were expecting the credit. And, I realize they are much more expensive to maintain.
I've just had a very crappy year and I shouldn't have let it spill over here. I can't even imagine finding out I had to pay $4,000 more in taxes than I had expected to.
As it is we pay the double FICA due to being self employed and that is what kills us regardless of how hard we work.
Edited to add that I am very thankful everything turned out OK health wise! And, that I realize not everyone is so lucky.
[ edited by myfavorites4u on Mar 25, 2007 02:41 PM ]
posted on March 26, 2007 09:30:45 AM new
Hey, in the end, I am all for paying my taxes. I am happy to pay because it means I EARNED. The thing that gets to me is I like to prepare for my Taxes. I like to Play Fair, but Play the system. If they tell me I am going to get $4000 for doing something, so tell me, "OOPS, Sorry"
posted on March 26, 2007 11:02:21 AM new
dajapooh,
I hear you! The AMT is the quiet killer. You never know that it's stalking you until it pounces, and by then it's too late.
Congress is afraid to get rid of it because they'd fall billions short. Bush loves it because he gets to claim tax cuts, but doesn't actually have to provide them to millions of people.
As your tax credit goes, so do many people's mortgages (which are no longer fully deductible), charitable contributions, etc.
posted on March 27, 2007 03:14:32 PM new
well I'd get a second opinion on my tax return IMHO. I can't believe they can't find a measly $100.00 they can take off.
posted on March 27, 2007 04:06:18 PM new
Wouldn't it make more economic sense to buy a used car in good condition. This way you don't immediately lose 20-30% depreciation when driving a new car out of the dealership. I can't understand why any government would offer tax incentives to buy new cars, unless the elected representatives owned stock in US car manufacturers or received financial incentives to support them. Also remember that many 'US' car manufacturers are now foreign owned... so the money flows offshore
posted on March 28, 2007 03:05:16 AM new
Actually, I came to the conclusion that if I were to by a car again, I would buy 2 used honda civic GXs. In the end, it would not have cost that much more and we would have both benefited from having the smaller, more efficient car. I've gotten myself a new car, whether I've needed it or not every 15 years. I guess my next car(s) will be the 2020 models.
. The fallacy essentially warns against assuming that just because everyone believes something is true does not make it so. Misinformation is easily introduced into rumors by intermediate messengers.