I have started to prepare my tax return over the weekend using one of the online software apps and it has been showing that I will owe the Federal Government about $600.00.  Obviously, looking at this figure I get hacked off because of what I have to pay all year.  As I thought about it I really began to get mad as nothing has changed from last year except the following: We made a few thousand more in income this year than last. I won a $1,000 package from the lottery that I needed to pay income tax and I contributed another 3k-4k to my 401K.  Last year we paid $43 to the Federal Government which I was ok with as I am not one of those people who needs a big refund as I would rather have my money during the year.

Unless I have made a mistake (and I don’t think I have) why is that I am having to pay this much more in taxes than last year.  I do not have any concrete proof but do have a theory as to why this is so.  This just confirms to me the middle class in this country carries the tax burden for this country and this is why there needs to be a complete overhaul of the tax code. I will need to lower my withholding again, try and put more money in my 401k (I already put in 15%) to keep from having to pay at the end of the year.  But this takes more money out of my pocket for day-to-day expenses which in turns keep me from spending.  If the majority of the middle class is like this then there will not be an economic recovery because no one has any extra money to spend.  Doesn’t seem to hard to figure out that with extra money then extra spending will occur!!

I am not sure the flat tax is the answer, but it has got to be easier than what we have now.  I do know why the tax code is written the way it is and I borrow a ole cliché that I  have heard in the past “figures don’t lie, but liars can figure.  Thus you have the reason for the tax code in place today.

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