Category: IRS


One again I have received my annual bonus and as usual the government takes their standard 42% in taxes that include; Federal, State, Local, Medicare, and Social Security.  I don’t even look forward to it because I know this will be stolen from me and it is quite disheartening to bust your tail all year and hope this extra money will help me catch up on a few things then I look at the deposit and get angry about it!

I am not one to sit around and complain as I try to take action to express my frustration and in this case I have done so by writing my Congressman and Senator. As can be expected I received less than an adequate response to the unfairness of taking this percentage of my bonus.  In a nutshell I was told I could claim this on my taxes and get in back in a refund. Well guess what.. I can’t!!, This is counted as regular income on my W-2 so I can’t enter this on my income tax in a way to get any type of deduction. As a matter of fact I received a two page letter that gave me the “runaround” on why “my money” was stolen from me!

Let me say, I understand there have to be taxes to run the country but when this government is wasting all this money and we give money to countries like Pakistan, Afghanistan, Iraq that hate us, want us dead and all the while the people in this country are falling farther and farther behind in trying to make a living!  I have a proposal to make with the government: “Go ahead and take 42% from me but in return I want them to give me back the kind of money they are giving to these countries in the Middle East”.  If all Americans were “given” back the money this country hands to these ingrateful nations, the economy would turn around in 6 months!  As long as the government continues to confiscate money from the citizens at an unfair rate the less incentive we all have to work harder and to be better!

I intend on writing another letter to my Representatives on this issue as I will not give up!! It may never change, but it doesn’t do me any good to just sit here a stew about it and I suggest we all do the same and let Washington know we are watching!

 

Last year the President proposed a payroll tax cut which was implemented for working Americans. While not a lot of money the cut is appreciated and every little bit helps.  However, in the debt ceiling agreement the continued payroll tax cut was not included and postponed for discussion at a later time.  To me this should have been a very important part of the discussion because it is possible the Congress would let this sunset and then the middle class would have their taxes raised on the sly to help pay for this continued unnecessary spending. So the Congress could be ready to “stick it” to us again!!

Don’t think the President is off the hook either for continuing to push for a continued payroll tax cut which I appreciate.  As we found out when we filed taxeS last year this increased the income that was brought home and then had to be declared income and taxeS paid so really no one came out ahead.  If the President really wanted to make a good impression not only would he continue to push for an extension of a payroll tax cut, but tell the IRS they are not allowed to collect any tax on the extra money working Americans received through a break in the payroll tax. Maybe instead of turning the IRS loose on Americans we should have them go after Iraq and Afghanistan because with all that money we gave them tax-free, there would be more than enough to close the budget gap!

http://www.reuters.com/article/2011/08/01/usa-debt-payroll-idUSN1E77014520110801

As we move down the road since the passage of Healthcare reform the “slow trickle” of information begins to come out on how healthcare for everyone is going to be paid for and as expected it will be paid for on the backs of working Americans.  New information has just been released that says “over the counter medications can no longer be used under a Flexible Spending Account unless there is a prescription from a doctor”. The new requirements take effect in January 2011 and the IRS has spelled out what needs to be done to meet the requirements.  If you have not guessed already and what some of us knew would happen this change is being made to raise revenue and help pay for premiums of the lower-income uninsured.

Now we know why 17,000 additional IRS agents are being hired, so they can make sure “working Americans” hand over their money to pay for all of this!!  The FSA benefited working people by helping them pay for prescriptions, office visits and over the counter medication and this are slowly being taken away!  We hear our government say “we will tax the rich” to pay for all of this.  Well, I hate to be the bearer of bad news but there are not enough “rich people” to pay for all of this and the plan all along was to have the working people pay for this.  The government has to get revenue from somewhere and the hiring of all these IRS agents is to make sure they get it!  Our only hope is the ballot box so I urge you to continue to vote out the current politicians in office and do this in every election until they get the point that we are all fed up and not going to take this anymore!!  I have linked to the article below.
http://www.workforce.com/section/news/article/irs-says-flexible-spending-accounts-cant-reimburse-otc-drugs.php