Over 60k in Federal Taxes for 2015

a reply to: Metallicus

I got a note from my CPA saying we owe $12,000. I checked my w2 and between me and wife, we paid about $100k in taxes to fed government this year. This doesn't include the $10k I pay in local property taxes.

We are just two working stiffs. I know I make good money, but we are hardly rich. We make just enough to have a relatively comfortable life. We aren't extravagant. Most of our earnings go towards our retirement planning, college savings, and daycare.

We have a HH income that puts us right at the bottom of the 1%. While I recognize we make what seems like a lot, what annoys me is that people don't see the amount of effort we put into our careers, education, etc. We don't mind paying taxes, but at some point enough is enough.

People like us complain because we get lumped in with the true 1% (the .01% of the 1%). There is a huge difference between a dual income professional couple making $400k a year and some hedge fund manager or athlete making $50 million a year even though both of us are in the 1%. Our lives are not even remotely on the same level.

At any given point, I can be bumped down in earnings. We are not independently wealthy. Most of us who make it to the 1% don't stay their long. We are in our 40s. We are scraping and saving every bit we can so we can retire as we don't expect social security to be there for us.

If anyone thinks I couldn't do something more productive with that $100k we paid to the federal government, you are a stone cold idiot. That money would pay for my kids tuition. It helps me pay for my elderly parents. It could be invested (which ultimatley helps the economy). It could go to charity. Instead it goes into this blackhole called the Federal government and gets pissed away.

a reply to: Edumakated

I can empathise with you (and Metallicus) because if you work hard and make money why should you be the subject of resentment - but then you go and do it yourself!! Kind of kills the empathy a little. You say you are at the lowest of the 1% and then complain when you are 'lumped in with the true 1%' - that's because the one percent figure isn't open to interpretation, it's a fact and you seem to be trying for some reason to distancing yourself from it. Not sure why, what you earn is your business and good luck to you.

Tax is supposed to be proportionate to earnings in virtually every nation on Earth so $100K to you is proportionate to someone who has to pay $10K who earns only ten percent of your joint income.... if you think it all gets pissed away you might want to ask your government for a breakdown of how your tax is spent, I should imagine that is information that for the most part is freely available.

a reply to: Atsbhct

AhHA! So - he's wealthy.
Yep, good for him. No sympathy at all from me.

a reply to: Edumakated

Erm, good for you.

Metallicus inherited his wealth. Different scenario altogether.

Dude if you pay that much in taxes in a year then you are one rich SOB. What? You cant live amazingly on $250,000 a year? Cry me a river.
Nobody should feel sorry for you. Millions of Americans make barely a 1/10th of what you must make in a year and we are supposed to feel bad?

Hell no. Did you put in at least 2000 hours of heavy labor last year? I know you didnt or you wouldnt have made nearly that much. My point being is most likely millions of people work a physically harder job than you and get paid a fraction for it. We dont feel bad. Sorry

My question is how are you complainers wasting your money personally? I made barely 30k last year and i consider myself to live a pretty damn good life.

I have absolutely no idea what I could even possibly blow that much money on in a year. Just scraping by my ass. You must suck with budgeting i guess.
Seriously. Move out of the 2 million dollar house or sell the Benz. Good lord the horror!

originally posted by: lightedhype
Dude if you pay that much in taxes in a year then you are one rich SOB. What? You cant live amazingly on $250,000 a year? Cry me a river.
Nobody should feel sorry for you. Millions of Americans make barely a 1/10th of what you must make in a year and we are supposed to feel bad?

Hell no. Did you put in at least 2000 hours of heavy labor last year? I know you didnt or you wouldnt have made nearly that much. My point being is most likely millions of people work a physically harder job than you and get paid a fraction for it. We dont feel bad. Sorry

I spent most of my 20s regularly working 80-100 hour work weeks in my career. I still regularly work 60 hour weeks. Please don't give me the spiel about not working. Granted it ain't manual labor, but then again that is why I busted my ass in school and took out $100k in student loans for a graduate degree.

I know I am fortunate. I have no issue paying reasonable taxes. However, it is never ending. Every dime of my earnings from January to May just so I can pay Uncle Sam.

The lower classes don't pay sh*t and yet all we hear is we need to pay more more more. How much of my money do you think the government deserves?

There are only so many of us pulling the cart, yet everyone wants a ride.

I'm not filing anything because I've earned nothing this year, yet I still have to pay up.

originally posted by: Edumakated

originally posted by: lightedhype
Dude if you pay that much in taxes in a year then you are one rich SOB. What? You cant live amazingly on $250,000 a year? Cry me a river.
Nobody should feel sorry for you. Millions of Americans make barely a 1/10th of what you must make in a year and we are supposed to feel bad?

Hell no. Did you put in at least 2000 hours of heavy labor last year? I know you didnt or you wouldnt have made nearly that much. My point being is most likely millions of people work a physically harder job than you and get paid a fraction for it. We dont feel bad. Sorry

I spent most of my 20s regularly working 80-100 hour work weeks in my career. I still regularly work 60 hour weeks. Please don't give me the spiel about not working. Granted it ain't manual labor, but then again that is why I busted my ass in school and took out $100k in student loans for a graduate degree.

I know I am fortunate. I have no issue paying reasonable taxes. However, it is never ending. Every dime of my earnings from January to May just so I can pay Uncle Sam.

The lower classes don't pay sh*t and yet all we hear is we need to pay more more more. How much of my money do you think the government deserves?

There are only so many of us pulling the cart, yet everyone wants a ride.

Oh, the 'lower classes' eh? That kind of shows true colours doesn't it?

If between you and your wife you are paying roughly 40% in tax based on the level of your combined income then I wouldn't say you are any different to anyone else - you just seem to feel that for some reason you shouldn't have to pay it. Speak to an accountant, ask them to be creative - if you are an actual accountant then I'm not sure I would want to be one of your clients though.

originally posted by: buster2010

People that cry about paying taxes now are to be laughed at because taxes now are nothing compared to what we used to pay.

Women in this country used to be treated as property and second class citizens, and minorities were slaves who could be beaten and even killed with zero liability... women who cry today about women's rights and minorities who whine about discrimination are to be laughed at because their modern plights are nothing compared to what their people once went through.

Agree with that statement, buster? No? Well, now you realize how ridiculous your statement on taxes sounds.

originally posted by: uncommitted
a reply to: Edumakated

I can empathise with you (and Metallicus) because if you work hard and make money why should you be the subject of resentment - but then you go and do it yourself!! Kind of kills the empathy a little. You say you are at the lowest of the 1% and then complain when you are 'lumped in with the true 1%' - that's because the one percent figure isn't open to interpretation, it's a fact and you seem to be trying for some reason to distancing yourself from it. Not sure why, what you earn is your business and good luck to you.

Tax is supposed to be proportionate to earnings in virtually every nation on Earth so $100K to you is proportionate to someone who has to pay $10K who earns only ten percent of your joint income.... if you think it all gets pissed away you might want to ask your government for a breakdown of how your tax is spent, I should imagine that is information that for the most part is freely available.

What annoys us is that isn't accurate. The poorest Americans are in the top 1% GLOBALLY. Your average broke hoodrat in Chicago lives better than 99% of people in the world. Maybe we should tax them at 50%. After all, they are in the 99%!

Progressives are good at misdirecting. You see Obama and his ilk talking about "Millionaires and Billionaires" showing pictures of Warren Buffet and Zuckerberg and then when you actually read their tax policies, they will put highest bracket at like $250k. Just barely being in the top 1% income wise is like being 6 foot tall. You are taller than 99% of the people, but in no way a pro basketball player.

I don't know where you are from, but $250k is not a Millionaire and Billionaire. Far from it. They aren't even in the same ballpark when it comes to wealth and lifestyle. $250k is literally upper middle class in many major cities. It could be a high school teacher and a firefighter.

While making $400k a year is good money it is not even remotely the same as making even $2 million/yr. Believe me, I know a lot of people making $200-$500k/yr. A LOT. Most send their kids to public school. Drive 10 year old cars. Live in fairly modest homes. All it does is mean you can afford a few things like day care, maxing out retirement and maybe some vacations. You will not be driving expensive cars (unless you are really bad with managing money), flying private jets, and popping bottles with Jay Z. You are a working stiff - doctor, lawyer, middle management. All it takes is an extended period of unemployment, medical problem, down turn in business and you will quickly find yourself broke.

Of course, we haven't even gotten into the difference between income and wealth. You can be immensely wealthy with very little income or you can have high income with not a lot of wealth. It take time to accumulate wealth. Income can be fleeting. The vast majority of the people who make it to the 1% in income do not stay there more than a few years.

originally posted by: BuzzyWigs
a reply to: Edumakated

Erm, good for you.

Metallicus inherited his wealth. Different scenario altogether.

Not true.

I can't use the inherited money until I am in my 60's because it was in the form of an IRA. Sure it will be great then, but for now I have to pay college for my daughter out of what I make now.

originally posted by: reldra

originally posted by: diggindirt
a reply to: Metallicus
I feel for you brother. I've just written the check for our contribution. In addition to the taxes, I must also pay my annual fine for not contributing to the health insurance industry. THAT steams my clams!

You paid a tax since you do not have health insurance. That goes towards paying for when you end up in the ER and the bill causes Metallicus's taxes to go up to cover it .

Some years back when I was in a motorcycle accident and landed in the hospital racking up a $70,000 bill, the accounting department laughed when I went to pay the bill. They stated that I had to pay that much because I had to pay for the Ilegal Mexicans that didnt pay their bills that Californias left leaning government encourages to come here and stay. Some of the accountants in that office were hispanic, but they were of course here legally. I didnt find any humor in that at all. Thats is who we are paying for here.

As for the Op, I feel for you bro. I just paid out $14,000 and I thought that was bad.

originally posted by: lightedhype
I have absolutely no idea what I could even possibly blow that much money on in a year.

You need a better imagination.

Btw...I drive a Subaru Outback not a BMW.

originally posted by: Metallicus

originally posted by: lightedhype
I have absolutely no idea what I could even possibly blow that much money on in a year.

You need a better imagination.

Btw...I drive a Subaru Outback not a BMW.

Remember the Subaru commercial where Paul Hogan is racing through all kinds of muck and mud, then comes out into a clearing where theres a pond, and elephant and a tall good looking lady.? The elephant dips its trunk into the pond and sprays the windshield off. That tall gorgeous lady is my ex girlfriend. We are still very close.

originally posted by: Metallicus

originally posted by: lightedhype
I have absolutely no idea what I could even possibly blow that much money on in a year.

You need a better imagination.

Btw...I drive a Subaru Outback not a BMW.

You didn't know? Anyone who makes more than $75k/yr drives a Ferrari because you are rich!

a reply to: Metallicus

Not true.

I can't use the inherited money until I am in my 60's because it was in the form of an IRA. Sure it will be great then, but for now I have to pay college for my daughter out of what I make now.

Oohhh okay.....So, you're set for life in any case. And it would have been tax-free, right? Or did you have to pay some estate tax thing? (I heard not too long ago that it only applies to very large sums - 500k maybe?)

Or - was this 60k in taxes based on your earned income alone?

a reply to: lightedhype

I "waste" my money paying twice market value in rent to cover the subsidization of low income housing in the Anchorage, Alaska area. I also "waste" my money having to pay an astronomical insurance premium for the benefit of then being hit with an outrageous deductable, again to subsidize the low income handouts of medical coverage. I "'waste" my money paying higher energy rates to subsidize low income heating and fuel assistance programs. I "waste" my money having to buy low efficiency gasoline in the summer months thanks to the higher ethanol added to the gas. I "waste" my money paying sin taxes equal to 4 or 5 times the actual value of whatever I'm drinking, chewing, or smoking. I also "waste" the first 4 months of every year to pay Washington DC for the privilege of being hosed, most of that money goes to the Kept Voter pool to ensure politicians that want even more of my money keep getting elected, as few of the Kept Voters vote against their Meal Ticket.

The rest of my money is selfishly used to keep my family fed and clothed, both of which involve hunting and fishing license and gear purchases.

a reply to: Edumakated

I think you are missing the point. You seem to resent having to pay a proportionate rate of tax based on your joint income - I think almost everybody feels the same regardless of their level of income, why should you get some kind of opt out?

For the rest of your post, should someone on 20 million complain about their tax because they don't earn 50 million? What about someone with a paltry billion - not like they are Bill Gates, right? It's all relative but your point about taking the figures globally and the (your words) 'hood rat in Chicago', based on the same maths you would be possibly nudging closer to that 0.5% but actually it's all relative. My feeling about my much more modest income is that it isn't how much comes in, it's how much goes out. Like I said, I started out empathising with you but it seems you are just very annoyed that you have to pay a proportionate level of tax.

Anyway, maybe you should share your feelings to a broader audience - why not ask if you can do an Ask Me Anything as a member of the North American 1% club?

But, just as a BTW, it's protest groups that talk about the 1%'ers, not your government so you really shouldn't misdirect. Personally I tend to render unto Caesar that which is Caesars.

originally posted by: BuzzyWigs
a reply to: Metallicus

Not true.

I can't use the inherited money until I am in my 60's because it was in the form of an IRA. Sure it will be great then, but for now I have to pay college for my daughter out of what I make now.

Oohhh okay.....So, you're set for life in any case. And it would have been tax-free, right? Or did you have to pay some estate tax thing? (I heard not too long ago that it only applies to very large sums - 500k maybe?)

Or - was this 60k in taxes based on your earned income alone?

The money will require I pay taxes when I use it like any IRA. All IRA's are saved as before tax income except for Roth IRAs, but this is a traditional IRA. I only make a few 100k a year right now, but it is nice to have the IRA money in the bank in addition to my own retirement savings.

Why be angry at me for being successful? I worked hard for years in a crappy corporate job before I started my own businesses. I didn't like my life so I changed it to do my own thing. It isn't that hard because if I can do it anyone can with a little vision and a don't ever quit attitude can do it for themselves.