Sunday, April 12, 2009

Today, April 13, Is Tax Freedom Day 2009

Today is this year's Tax Freedom Day. That's the average day when most of us have worked enough to pay off our federal tax burden. The Tax Foundation tells us it falls eight days earlier this year than last. Kind of hard to believe with all the spending going on but they explain it this way:
(1) the recession has reduced tax collections even faster than it has reduced income, and (2) the stimulus package includes large temporary tax cuts for 2009 and 2010. Nevertheless, Americans will pay more in taxes than they will spend on food, clothing and housing combined.
How a stimulus package that hasn't even really gotten started yet can affect this year's taxes is puzzling. I guess it's in the way they do their figuring and they're looking forward.

Of course, the above refers to the nation as a whole. States all have their own Tax Freedom Day with Alaska having the lowest tax burden. Their Tax Freedom Day is the earliest: March 23.

California finds itself in the top five, which should come as no surprise. In fact I'm surprised we only rank 4th highest with our Tax Freedom Day landing on April 20 this year. The other top five states are (1)Connecticut, (2)New Jersey, (3)New York and (5)Maryland. You can see where the other states rank by scrolling down the Tax Freedom Day web page to the state table.

Anybody want to bet Tax Freedom Day comes later next year?
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As far as income taxes go, it seems this time of year and the taxes always cleans me out. We have Melinda Walsh, CPA do ours. It's too complicated when you're self employed to do it myself.

Had my usual scare a few weeks ago when I took my taxes in to be prepared. She did some quick calculations as she always does and came to the conclusion I owed more in taxes than I could pay. I was freaked and was trying to figure how I could deal with it.

Not to worry, though, at least not too much. When I went in to pick them up it was less than half of what she originally calculated. It still nearly cleans me out but at least I wouldn't have make installment payments.

That's actually a good business technique, whether she means it to be one, or not. Makes her the hero of the day knowing she saved you some money. I'd recommend Melinda to others but I don't believe she's accepting new clients at this time.
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Speaking of who to blame and who to praise for all our tax worries, The National Taxpayer's Union has their latest congressional ratings up now. Republicans Jeff Flake and Ron Paul take the #1 and 2 positions in the House. Senators DeMint and Barrasso (never even heard of them before) come in #1 and 2 in the Senate.

Locally, our very own Congressman Mike Thompson has a string of Fs in his ratings. I would of thought he'd get at least a D. Likewise our Senators Boxer and Feinstein both have a string of Fs. You can check other congresscritter's scores by searching the NTU database.
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With so many states increasing their tax burden on the citizens, even despite federal stimulus funds, some still aren't content. The Wall Street Journal takes a look at New York, a state that seems determined to beat out everyone else for the title of highest taxed state.
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And don't forget, Noon on April 15, anti- tax rally in front of the Humboldt County Courthouse. Hmmm...might the Humboldt Democratic Central Committee show up for a counter- protest?

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4 Comments:

At 6:57 AM, Anonymous Anonymous said...

Did you remember all of your medical trips to San Francisco - motel stays, meals and mileage? I believe you only get twenty cents for medical mileage but it all adds up.

 
At 7:04 AM, Blogger Fred said...

I don't remember if we brought that up this time, or not. I know to claim medical expenses they have to be over something like $10,000 before it does any good. Don't remember if mileage was included in that, or not.

I think it was around 3 years ago we had a whole bunch of medical expenses we were able to deduct.

 
At 12:06 PM, Anonymous Anonymous said...

Fred,
the tea party at the court house is a group of concerned taxpayers who know that next year will be even worse. We've made some signs and we encourage all of you to show up and meet your friends and neighbors.

 
At 10:56 PM, Anonymous Anonymous said...

Of course, the above refers to the nation as a whole. States all have their own Tax Freedom Day with Alaska having the lowest tax burden. Their Tax Freedom Day is the earliest: March 23.Yeah, but they are a socialist state. We don't want to be like them, always receiving govmnt money. Plus there's the whole fighting off dumpster-diving polar bears and clubbing baby seals thing. Better to be self-sufficient entrepreneurs.
I, for one, am not paying taxes this year, instead i am investing all that money into Lipton teabags and postage stamps. You think Feinstein and Boxer are unhappy now, just wait until they check their mailboxs!

-Ted Williams (Anonymous)

 

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