Not Joe the Plumber but SAHM

iVillage Member
Registered: 10-16-2008
Not Joe the Plumber but SAHM
6
Thu, 10-16-2008 - 10:37am

Open Letter

Dear Senator Obama,

I am a stay-at-home mom living in the over $250k tax bracket. I want to ask you why you feel my family is not doing it's part to share the wealth in this country. Our family does well but we also pay taxes at the highest marginal rate. We do not have millions or the kind of lifestyle that would get us access to tax loopholes. We only get deductions for home mortgage interests, state taxes paid and charitable contributions. Last year those three deductions were capped because the government limits the deductions at our income level. In the past we have been stuck in AMT which ensures we do not underpay our fair share of taxes.

Because of our family's income level, our children will not qualify for student loans or other aid. Therefore we must save entirely for their college. We save as much as we can. In recent weeks lost 30% of those savings as well as a decent amount of our retirement savings and the few mutual fund investments we have are under water. The only other asset we have is our family home. We only have one. It would be really tough to sell it in this market, we've lost a large chunk of our equity.

We have never received a stimulus check, yet we do our part to donate to charities we believe in, invest in the market and spend to keep the economy going. And we pay our taxes. There is no question that the opportunities in this great country have allowed us to achieve the American Dream. For that I am grateful.

Your proposals will take an additional 12% out of our annual family budget by increasing the marginal tax rate and increasing payroll taxes. We aren't struggling yet but we will be if your tax proposals pass. We will have to stop or severely limit college savings, with one child only 3.5 years from college and the savings down 30%. Last year we paid enough in Federal Taxes to supply 240 individuals with a Bush stimulus check, similar to the stimulus plan you propose if you are elected (I guess that continuation of the same Bush economic polices is good). I have no doubt that some of what we paid went to wasteful government projects and earmark spending that did not help any struggling families. You say $18 billion in earmarks is not a lot of money to you but 12% of my family budget is a lot to me and my children. I do not begrudge what we already give the government, but I will argue that we are doing our share. I argue we are patriotic and we are neighborly.

We are upper middle class, we are not like your friends, Oprah and Warren Buffet. Our priorities are saving for our retirement, our kids college and paying off our house. We can comfortably do those three things now, though we are worried about the economy like everyone else.

I am a registered Democrat and have always believed in social programs for those who need them. I still believe in them. But I do not understand why when you speak that it sounds as though my family is getting something over on this country. That we aren't doing our part. That we don't pay enough tax. That we don't do enough to lift others up. I say we are doing a lot by not asking anything from the government. I say it is the government that is letting the American people down, not us.

If this economy gets worse my husbands job will be at risk. We could lose our home along with the remainder of our savings. The only good news I see coming from the Democrats is that maybe then we can have the government contribute to our children's college education, we'll get a tax cut and might finally see one of those stimulus checks. Then you'd finally get your chance to lift my family up.

Pennsylvania Mom
http://openlettertobarack.blogspot.com/

Pennsylvania Mom http://openlettertobarack.blogspot.com/
iVillage Member
Registered: 10-25-2006
Thu, 10-16-2008 - 11:57am

It sounds as if your family is pretty well off and that you worked hard to get where you are. What if your husband does lose his job? What if he never gets another job that pays as well as his current one? It has happened to many people, and it can happen to your family. Let's say he gets a job that pays only $100,000 per year. Your family would still be a lot better off than 80% of households, and then you'd have to pay less tax. If that would happen, your children would qualify for the same benefits the middle class get, and then you'd be a lot better off with the Democrats' policies than the Republicans.

While I understand your concerns, I don't think there is anything wrong with subjecting those with incomes over $250,000 family to a higher marginal tax rate. If you feel you need to vote Republican because you're now one of the rich ones for whom they craft their policies, it's your choice. With all your worries you posted about, though, I'd expect you to empathize with those who have less, and understand that your paying a bit more in taxes now will mean some poor children will be able to eat more protein so that they grow to be healthy, educated adults who someday will pay taxes to support you in your old age.

-----------------------------------------------
http://www.pnhp.org/news/2009/october/meet_the_new_health_.php

http://www.youtube.com/watch?v=DQTBYQlQ7yM

iVillage Member
Registered: 07-24-2008
Thu, 10-16-2008 - 12:00pm
Probably doesn't make you feel better, but my parents only made about $160,000 annually and me and my brother and sister were all told my parents were "too wealthy" to qualify for any sort of college financial aid as far as federal grants or such. We all worked our butts off in academics and athletics to secure scholarships that way, as well as attending in-state public institutions. Things like PELL grants are REALLY hard to get, regardless of the parent's annual income.
iVillage Member
Registered: 08-05-2004
Thu, 10-16-2008 - 12:08pm
It sounds as though you and your husband have done everything right.
iVillage Member
Registered: 10-16-2008
Thu, 10-16-2008 - 12:53pm

>>>>>I don't think there is anything wrong with subjecting those with incomes over $250,000 family to a higher marginal tax rate.<<<<

And this is the problem, apparently Obama has convinced people we don't already have a progressive tax rate. If he was INTRODUCING a new progressive tax rate, fine. But we already have one.

>>>>If you feel you need to vote Republican because you're now one of the rich ones for whom they craft their policies, it's your choice.<<<<

I am voting against my party because in the past I've been duped into believe the upper middle class pays less in tax. I'm here to tell you we don't. We don't get loopholes, we get capped deductions, a higher rate and AMT. I am voting against my party because I am unpatriotic and unneighborly if I *only* give 40% of my income to the government. Do you give that much to the government? Do you want to? Are you unpatriotic if you don't?

>>>>>With all your worries you posted about, though, I'd expect you to empathize with those who have less, and understand that your paying a bit more in taxes now will mean some poor children will be able to eat more protein so that they grow to be healthy, educated adults who someday will pay taxes to support you in your old age.<<<<<

I have never been in an upper tax bracket except the last 2 years. That means I've lived in a lower tax bracket for 36 years of my life. I was raised by a struggling single mom, and I've been a middle class single mom. I know. I also know that the government can't get $1 from me and give $1 to a kid who needs protein. The government is not that efficient. I want people to have access to jobs so they can provide for their own families, not wait for a government hand out. All that will do is erode the upper middle class, and then where the people who expect the hand out be left?

Pennsylvania Mom http://openlettertobarack.blogspot.com/
iVillage Member
Registered: 10-16-2008
Thu, 10-16-2008 - 1:03pm

I have been middle class all my life, I never felt I got the short end of the stick. In an economic downturn we all get the short end of the stick, we can't make up for that by unfairly punishing one group. We lost 30% of our kids college savings in recent weeks, we have seen the equity in our home evaporate, we are at just risk of losing everything if my husband gets laid off too. Obama thinks taxing the upper middle class is his solution, but in an economic downturn there are fewer people in this group to tax, and we need those still here to invest and spend and create jobs.

Those who earn less can say they don't care about the upper middle, but that's your boss, your doctor, the consultant your business hires, they buy more cars from your brother who works in the auto industry, they make more trips to the salon so the hair dresser and nail tech have customers. Obama wants to demonize all big corporations with big profits, but how many people do those companies employ, how many do they provide with health insurance, how many middle class people have their 401k money invested in those companies????? A lot. You can't bring everyone up if you punish success.

Pennsylvania Mom http://openlettertobarack.blogspot.com/
iVillage Member
Registered: 09-08-2008
Thu, 10-16-2008 - 1:51pm

(((I am a stay-at-home mom living in the over $250k tax bracket. I want to ask you why you feel my family is not doing it's part to share the wealth in this country....


...If this economy gets worse my husbands job will be at risk. We could lose our home along with the remainder of our savings. The only good news I see coming from the Democrats is that maybe then we can have the government contribute to our children's college education, we'll get a tax cut and might finally see one of those stimulus checks.))))


I am sorry to hear about your family's concerns. Obama is listening. I have some, too,