Joe the Plumber, a new spin

iVillage Member
Registered: 10-16-2008
Joe the Plumber, a new spin
166
Fri, 10-17-2008 - 4:16pm

The appeal of Joe the Plumber is that he puts a face to a tax number. Even if he's really not earning that much or isn't even a plumber. I am married to someone who makes that much and let me try to make the same point from a different perspective.

Go ahead, raise my taxes Obama. You are right, I can afford it. But first I'd like you to meet Mike, Steve and Emily. I don't own a business or anything, but I do spend my money (you know, since I'm one of the have's, that's what we do). Obama wanta to spread my wealth around and here's how it will affect 3 people in the middle and lower income brackets.

Mike - Mike is a music school teacher. He does private lessons on the side to make a little extra, in addition to volunteering in a community band. He loves teaching and playing music. He teaches one of our children and we pay him $100/mo.

Steve - Steve works full time doing private music lessons. He has two kids who he pays child support for and he lives on the edge of poverty. Private lessons is his only source of income. We pay for him to instruct three of our children and me every week. We pay him $364/mo.

Emily - Emily works full time but became a mom at age 18 yo, has no education past high school and lives near the poverty level. She is on her own being recently divorced. She helps us out once or twice a week, earning $120-$160/mo.

I recalculated Obama's tax proposals and realized it will only cost my family $1,350/mo on average. I can cover almost half of that by cutting my budget back, not hiring the babysitter and doing away with private music lessons (they are luxury items anyway).

I'm sure Mike, Steve and Emily will be glad to know that instead of earning money from my family, they will get $500 refundable tax credit next year under Obama's plan. And maybe even if $300 stimulus check like they got from Bush in the past.

Make less and pay less in tax, that's Obama's plan for the middle class.

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

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iVillage Member
Registered: 10-16-2008
Sun, 10-19-2008 - 2:06am
We didn't have them in overly risky investments. The whole market declined sharply, even the non-risky stocks. The money we lost was in a few carefully chose mutual funds and the college savings plans.
Pennsylvania Mom http://openlettertobarack.blogspot.com/
iVillage Member
Registered: 10-16-2008
Sun, 10-19-2008 - 2:07am

>>>The issue is that he is not able to support himself with this career. If he is not able to support himself he needs to either get a second job or another career.<<<<

Or vote for Obama so the wealth can be spread around.

Pennsylvania Mom http://openlettertobarack.blogspot.com/
iVillage Member
Registered: 10-16-2008
Sun, 10-19-2008 - 2:13am

>>>It's interesting to know we will be rewarded for that.>>>

>>>>Do you think it more reasonable that your children be punished for it? I'm confused. Surely it isn't your children's fault that you didn't plan well.<<<<

Our children wouldn't be punished. They won't get the tax credit, we'll be paying their education and we'll get the credit/savings from Obama's plan. Whether we saved/planned or had to pay currently, we'd try to cover the cost of their college. Thank goodness Obama realizes how much that $96k will help my family, even though we really could afford college without it.

Pennsylvania Mom http://openlettertobarack.blogspot.com/
iVillage Member
Registered: 05-27-2008
Sun, 10-19-2008 - 4:04am

I don't see how that is irresponsible. We live within our means, it's our choice to spend our money the way we wish.

>>In another post you had stated that you were concerned about having adequate funds to pay for your children's education. You also stated that your investments had declined by 30% you also stated that you were concerned about losing your home if you husband lost his job.

It is my contention that you are not living within your means if you have college age children and a home mortgage (you are over extended) . You are also engaging in risky investment strategies which may are jeopardizing college for you kids.

If you are living within your means you would have at least one years salary in liquid investments, which would mean you would not be in danger of losing your home if your husband loses his job.

I have suggested you cut some of your spending to put yourself on a better financial footing.

You are certainly free to spend and extend as you wish but are you prepared to re enter the job market and pay for your child education if something would happen to your spouse?
I the past, I worked in a field that dealt with single mom's. Single moms include, those who are widowed. I have found many SAHM are not prepared for contingencies and their economic decline is painful to watch.

iVillage Member
Registered: 05-27-2008
Sun, 10-19-2008 - 4:18am

Sorry, a SAHM working on a career change. I've only been a SAHM the last year.

This is a little different than previously presented. I have changed careers several time during my life. I was fortunately able to continue to work while taking classes. This is not the same as someone who hasn't worked for years because they have exercised the SAHM option. These women are faced with some serious challenges when they try to re enter the job market.

I oversee a department of nine employees, with a range of skills. In the past two years I have had two entry level positions, paying about $21,000/year. I received more than 60 applications for each position. Many of the applicants are older women who have been out of the workforce for years. I have never been able to justify hiring them, I have to hire the best qualified applicant.

iVillage Member
Registered: 05-27-2008
Sun, 10-19-2008 - 4:31am

We didn't have them in overly risky investments. The whole market declined sharply, even the non-risky stocks. The money we lost was in a few carefully chose mutual funds and the college savings plans.

>>Any investment that is not FDIC insured is a risky investment. We have also experienced some loss due to my employer based 401K. In order to receive that match I have to put up 8% of my income. I have always viewed this as risky and have not put in anything but what was required. Most of our money is in CD's at several banks which are FDIC insured.

I have always been very distrustful of the entire 401K, 529, scheme especially in the free market environment that we are not living in. Everyone seems to have forgotten that in a free market there are economic cycles some of which are deep depressions that can last for a decade. There is also a strong incentive to cheat investors in unregulated markets.

Boy am I ever grateful that the Republicans were not able to screw with Social Security.

iVillage Member
Registered: 05-27-2008
Sun, 10-19-2008 - 4:42am

Unless you are saying WE shouldn't spread the wealth around, it's not our job, that job ONLY belongs to the government?

>>It is not your job to spread the wealth around if you are creating financial risk for you family. You may not agree, but if my child's college education was in jeopardy, I would stop spreading the wealth around. It is a matter of priorities. If music lessons are more important than a college education, than feel free to make that decision.

iVillage Member
Registered: 04-24-2008
Sun, 10-19-2008 - 7:27am

You seem to hear a lot of things.

iVillage Member
Registered: 09-23-2004
Sun, 10-19-2008 - 7:31am

I think that's the first time I've actually understood tax talk, usually I go into some sort of coma like state and turn off, lol....


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iVillage Member
Registered: 04-24-2008
Sun, 10-19-2008 - 7:34am

That's a great explanation.

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