A recent report from the Associated Press revealed that 47% of American households pay no taxes.  None.  Zip, zilch, nada.

In fact, if you are in a family of 4 making less than $50k per year, you end up owing nothing.

If this fact has you a bit peeved after stewing over your taxes for the last several weeks, keep reading, it gets better.

The bottom 40% of households will actually make money off Uncle Sam this year.  Put another way, they don’t pay taxes, yet they still get a check in the mail from the U.S. government.  It’s really not a refund, since they don’t have anything withheld to return.

So all the infrastructure that we all take advantage of (military, interstate, national airspace system, postal service, etc), regardless of income; 50% of American households pay not only for their share, but the other 50% of households share as well.

Think about this: If you owe money this year, you may as well give half of what you owe to your neighbor.  He’ll get it anyway.

Taxes Taxes

As I’ve mentioned in ad nauseam, I hate paying taxes.

This years tax results ended up more favorable than in years past.  I’m actually getting money back from the Fed this year, about $850 to be more precise.

To be honest, my goal is to break even.  If there’s anything worse than paying good money for bogus and frivolous spending in Washington, it’s giving Uncle Sam an interest free loan.

Adding an extra dependent helps (for a $1,000 tax credit) and I’m using all the money I’ve paid to the day care center to my advantage.

Then there’s the B.S. “making work pay” tax credit of $800.  I’ve got mixed feelings about this one, since I’m not really a fan of taking (or supporting) free handouts from our government.  On the other hand, if everyone else is getting the so called “tax break”, why not me?

If you take out that $800 credit, I basically broke even.

On a related note, if you’re tired of paying taxes to fund worthless government programs, maybe it’s time for a change.  Check out the Fair Tax proposition; it might be a worthwhile cause.

Taxes Fair Tax, Taxes

Anyone who’s followed this space for any length of time knows I despise tax season.  I don’t generally use the term “hate”, but in this rare case it seems to apply.

Hate,    –verb (used with object)

to dislike intensely or passionately; feel extreme aversion for or extreme hostility toward; detest: to hate the enemy; to hate bigotry.

I’m not to the point of  “extreme hostility” yet, but the rest of the above certainly applies.

It’s not that I’m against paying taxes.  I understand the benefit.  Someone has to pay for the roads and highways we use, banking and aviation infrastructure, etc…

It’s the rest of the fraudulent and wasteful crap that my tax dollars spent on that really peeves me.

At any rate, corporate returns are due Monday, and I’ll be filing an extension.  Not because I’m not ready, I just don’t like being rushed.

More on how things turned out later.

Taxes tax code, Taxes