Sneaky new taxes

Murray's a bit suspicious of some of Obama's plans to only raise taxes on the rich. I haven't checked out either one of these, but I do own a second home and the county that taxes us should have gold plated computers and diamond studded swim pools in their schools, because few in the community have children (in that district). Based on square footage and what we cost the county in services, it is pure robbery. I can't imagine why this would be considered "double dipping"--we pay huge taxes for what we receive--a county sheriff driving through occasionally. He writes today in an e-mail

"There are new rules taking place in your financial world that your legislators seem to think you don't need to be aware. Like in the first bailout there is a provision that says you can no longer double dip on the tax savings with your vacation home and personal residence. You will pay taxes on your residence only if you exceed the limits but the vacation home, rental or flipper must be taxed. I'm not totally clear on this since it is written like most tax laws, so if it affects you, you might want to check it out.

Then in Obama's "save everyone" plan he says he's going to lower the PAYROLL tax tables so that individuals will have more money each week to spend. THIS IS NOT A TAX REDUCTION! It only means there is less tax taken out on payday, but at tax time you are still going to have to pay on what you earned. People who do this are going to owe big time on 4/15. I may be wrong on this but it's the way I see it.

Who knows what other changes were in the bailout that's been kept quiet. With all the jockeying around with the tax code makes it almost impossible to plan your financial future. You must remember this. The government's source of income is YOUR TAXES. So, with the current federal debt, the bailout plus Obama's grandiose plan TAXES WILL BE GOING UP UP UP in spite of what any of your favorite party members say. So you better plan now as best you can particularly with your taxable retirement funds."

The bailout and the run on handouts certainly can not be laid at BO's feet--except in the sense that he and McCain were two of the senators who thought it had to be signed immediately or the world would collapse, and put into play a contract with America that any 5 year old should have questioned. Everyone with a retirement plan from age 20-90 is participating in a loss of trillions in value, and now he plans a few more trillion to "stimulate" the economy. FDR tried this for a decade and the Depression didn't budge. Governments don't grow the economy by taxing us and spending our money on public works projects. The recent drop in gas prices from over $4 a gallon in the summer to under $2 in December amounted to a couple of thousand in the wallet for most families--especially Californians for whom driving is like breathing. But it didn't stimulate the economy. (It just proved all the libs were wrong that announcing drilling would bring down prices immediately.) We were on a credit binge (spending $117 for each $100 earned) and the hangover isn't pretty. Going into more debt is not the way to fix this.