House GOP proposes raising Medicare age to 67

[NW-Bound]

Yes, whatever we do, we need to think of the younger generation, if only for enlightened self-interest.

Just yesterday, I saw that an Italian grocery store announcing that shoppers who spent more than 30 euros there would be entered into a lottery run by the store.

The prize? They will offer 12 jobs, part-time at 4 hours/day, paying 1,100 euros/month. Such bleak job markets! Spain and Greece are even worse, and even Sweden. Bleak, bleak, bleak...

The store says that 90% of shoppers have chosen to enter.

See: http://www.bloomberg.com/news/2012-...rs-italians-jobs-as-payoff-during-crisis.html

 

[2017ish]

[snip]

[snip]

Another little quirk of our tax code is how much it can benefit a married couple compared to two singles living together. When a low income person marries a higher income person, it basically allows them to use double the deductions, since many of the low income person's deductions weren't useful to that person alone, but are very useful for reducing the combined couple's taxable income.

True, but the converse of that is when two high-income persons marry. There, if lower income of the two chooses to remain in the full-time workforce after kids, s/he has first dollar taxed at the highest marginal rate (plus payroll taxes). Been there, decided that it wasn't worth it to work just to pay the nanny and other two-income expenses.

Some of this is not perfectly fixable, but the system is creaking.

 

[Gatordoc50]

Here's another married guy with kids saying I pay basically zero federal tax on a decent six figure income. Well, I may pay $300 or so this year if I don't feel like optimizing taxes too much.

Deductions we get:
$51000 off the top for 2 401ks and a 457 plan.
$4200 government pension contribution
$10,000 traditional IRA contribs
5 exemptions (2 adults, 3 kids)
Married std deduction
$5000 Childcare FSA
$6450 HSA (next year; we did FSA this year)
$3000 capital loss deduction against ordinary income
$1000 student loan interest
$480 family Health insurance comes out pre-tax
$700 family dental insurance comes out pre-tax

Then on top of it all we get $3000 in child tax credits (3 kids).

For 2013 we will probably get a sizeable refund from the Fed taxes (ie we will have a negative tax rate).

We don't even itemize deductions in most years as we are just below the standard deduction even if we lump 2 years real estate property tax into 1 year. Our mortgage is almost paid off and only 1.99% interest anyway, so it is a tiny bit of interest annually.

Crazy federal tax policy and I laugh all the way to the bank every year. I used to think it is unfair, but now I'm more "git mine while the gittin's good, cause they will git me one day".

(edited to add: I just added up all the deductions and there is more than $110,000 in deductions from our gross income.)

There is definitely a sweet spot in the tax code and I think you've found it. Simplifying the tax code would prolly cost you about 25000 dollars/ year. [MOD EDIT]

 

[REWahoo]

There is definitely a sweet spot in the tax code and I think you've found it. Simplifying the tax code would prolly cost you about 25000 dollars/ year. [MOD EDIT]

The hog calling contest is underway...

 

[NW-Bound]

The complex tax code of the US has been going on for years. It is pointless to blame it on any single pol. Blame ourselves, the citizens, for demanding various "gimme", "gimme".

Mea culpa, anyone?

No? Yep, I thought so.

 

[rbmrtn]

I think Tocquevilles quote is right on target...

The American Republic will endure until the day Congress discovers that it can bribe the public with the public's money.
Alexis de Tocqueville

 

[Alan]

Thanks folks.