Friday, December 3, 2010

My Income Tax situation says that Richard Burr can go to hell


I bought TurboTax last night. Mistake. My stress level is now through the roof. I've been plugging in my 2010 tax estimates since 5 am in an effort to get a handle on my tax situation and which securities I need to sell before YE. By noon I was livid. It's coming up ugly. So ugly that I'm simply madder than hell. I had to go outside and take walks a few times to blow off steam.

Our government is FUCKED UP. And I blame my Republican Party. After 8 years of a Republican moron in the White House, and 6 years of total Republican control of the Congress, we were left with an income tax code that is so extremely difficult to understand that even I struggle to comprehend how it impacts me personally. What's the big deal you ask? I passed the CPA exam the first time I sat for it. Only 12% of people taking the exam manage that feat. I also passed the CIA (Certified Internal Auditor) and CMA (Certified Managerial Accountant) exams the first time. Bottom line - I'm a certifiable accounting nut job. Then there's that little MBA I earned from the Harvard Business School. But I can't fucking understand our income tax code without a concerted effort that makes my head hurt. If I can't look at our income tax code and adequately plan, with minimal effort, how in the world does an average American even stand a chance?

But that's not the worst of it. After working my tail off in this frustrating tax planning effort, I'm convinced my Republican Party is determined to absolutely destroy middle class America. My income tax situation? I am caught in AMT hell. Even assuming I push out a myriad of AMT preference items into the next tax year, there is nothing I can do to get out of AMT. I wind up paying both total and incremental federal income taxes at rates higher than Warren Buffet! And I'm not even in the same universe as Mr. Buffett when it comes to income. I'm just a solid, middle class American citizen. Yet I'm taxed higher than an American who has a net worth in excess of $45 Billion. Now how in the living hell can that be justified? Republican politicians hate middle class America. Republican politicians take every waking opportunity to dish out income tax candy to the ubber wealthy, and hang the vast middle of America out to dry. That's how.

Warren Buffett was on CNBC a few weeks ago. Warren looked up the income tax stats for 2008 recently published by the IRS. The top 400 earning Americans paid overall federal income taxes at a rate of 17 - 18%. Warren even looked at his personal income tax situation and admitted on national TV that his tax rate fell in that range. That's his total federal income taxes paid, divided by his total taxable income. His incremental income tax rate though was only 15%. His next dollar of reportable income would have been either a dividend or capital gain, which is only taxed at 15%.

Me? My incremental income tax rate, the rate applied to my very next dollar of income (which would be LT capital gain income), is a whopping 26%. I don't get to take advantage of the 15% capital gains tax rate. I'm not among America's ubber wealthy elite. I get stuck in middle class America AMT hell. And I'm going to be paying federal income taxes at an overall rate, federal income taxes divided by my total taxable income, of 23.6%.

Warren? 18 and 15%. Me? 23.6 and 26%. WTF?

Let's condense this down to a very simple example of the problem. If I was Warren Buffet, for every $100 I earn, I'd keep $5 more in my pocket. And the next $100 I earn, I'd keep $11 more. No damn wonder that Warren has more money than me. He has to give less of it to the IRS !!! Is that not one of the most fucked up situations you could ever image? The second richest man in America pays less tax on his income than us. H-O-L-Y ... S-H-I-T.

Republicans delivered this damn mess to our doorsteps. And Republicans, to the one, stand there today and tell middle class Americans that the rich and wealthy in our country need to have the Bush income tax cuts extended to them as well. When are we going to wake up and call bullshit on the damn theft perpetuated on middle class America by the Republican Party?

This is why I so deplore my Republican Senator Richard Burr. This POS, sorry assed Senator thinks we need to reward Warren Buffett with the same income tax cuts that should be delivered to middle class America. Oh really? Wake the hell up. Middle class Americans pay income taxes at rates substantially higher than the rich and wealthy in our country. We need to be kicking Republicans like Richard Burr in the damn teeth and running them the hell out of Washington DC.

Oh sheesh, it's time for one heck of a long, long walk.

North Carolina deserves better than Republican Senator Richard Burr.

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