A second income? Think again
If Mr. Obama wants to raise your taxes, but still encourage marriage, the greatest non-government, anti-poverty program we have, he should first read the Smart Money article on what that second income really costs.- "After you subtract what you'll owe the feds, your city and state, Social Security and Medicare, you may end up bringing home 60% or less of your spouse's new salary. And if the first spouse already earns a healthy income and you live in a high-tax state, the government pickpockets could easily hit you up for 50%."
Two things aren't mentioned in the article. First, the illusion that you actually have that second salary, so you spend accordingly. There's no calculator that can factor in pipe dreams. If your spouse went to work really understanding she'd have less than 1/2 of that $40,000, maybe you'd think twice before buying new toys, or trading up on a higher mortgage and you'd use it to pay down debt or save. Second, keep in mind that if your spouse is in the education field or contributes to a public employees plan, all that money taken out for Social Security is for nothing if they have a state retirement plan. Neither your spouse nor you will see that when you retire. Our federal employees and military can double-dip, but not teachers. The RINOs refused to help Bush fix SS, so now it will be up to the next guy, or the next or the next.
Keep in mind also that no one has fixed the AGI--and Mr. Obama is eyeing you like the fatted lamb; he thinks you're "rich" and can pay more taxes. Remember, the middle class pays; the rich hire accountants and lawyers to hide their wealth.
Also not mentioned in the Smart Money worksheet because it's about as popular as telling someone to stop smoking, a church tithe (start with 10% and work up) on that spousal income is a good way to stay out of debt, but you need to take it off the top so you don't think you have it to spend.
Unfortunately, articles like this do not reduce taxes, they just encourage people to not marry.
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3 comments:
Obama has already said that if you make less than $250k, he's not going to raise your taxes.
And you're lamenting the fact that people will be fooled into spending what they don't have, but isn't that what Bush has done? A $500B deficit and a national debt that has doubled since he took office? We're borrowing something like a billion a day from China to finance our spend first, pay later mentality. What a great legacy your party has decided to leave for your great-grandchildren. You must be very proud. I hope they can learn to speak Mandarin.
Yes, Bush has encouraged spending money we don't have and has taken in more with his tax cuts, which only encourages Congress to spend more. Especially on education, he spends like a drunken sailor. But we don't get a smarter electorate apparently. Yes, I do know a few words of Mandarin.
Murray says:
Sununu...I find it amazing that people think that the President alone is responsible for debit spending. I always though Congress was responsible for spending. Also, it seems that "PORK" and waste doesn't count. Plus how many candidates do you know of that fulfilled their campaign promises? Believe me, if Obama gets in, taxes are going up. He has the perfect excuse.... It's all Bush's fault! ( I'm not supportive of either party. But since basically there are only two, my choices are extremely limited)
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