Not Joe the Plumber, but SAHM

iVillage Member
Registered: 10-16-2008
Not Joe the Plumber, but SAHM
246
Thu, 10-16-2008 - 10:49am

My 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/

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iVillage Member
Registered: 10-16-2008
Sun, 10-19-2008 - 7:49pm
The group that estimated Obama would cover so many people had previously issued a report calling for a very similar healthcare plan. So it's not surprising they would rate it favorably, the obviously thought it would work. As of now it's just an estimate and some say experts say its an incredibly overblown one.
Pennsylvania Mom http://openlettertobarack.blogspot.com/
iVillage Member
Registered: 05-06-2007
Sun, 10-19-2008 - 7:49pm

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I mentioned this before, McCain will "encourage" insurers and state governments to cover those with pre-existing conditions whereas Obama will not allow insurers to deny coverage to those with pre-existing conditions. There's a difference.


Chrissy
mom to Aidan 8/21/03
Grayson Blaine 12/30/07

iVillage Member
Registered: 07-11-2006
Sun, 10-19-2008 - 7:56pm

OK, at this point I have to confess, I didn't read the whole thread, but can you or have you already explained what you believe wealth redistribution is?

To me, it's as UU said, a change who gets a chunk of the money.

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iVillage Member
Registered: 10-16-2008
Sun, 10-19-2008 - 7:57pm

We shouldn't need loans, my point was we have to save for college and pay ourselves, not wait around for anyone to do it for us. That means we save a large chunk of our income towards college. But apparently Obama wants to help us pay after all, who would have thunk it. We can save about $100k less if he gets elected and passes his new plan.

We can tighten our budget and still life fine, you are right. And some have pointed out here or elsewhere a few clarifications in the payroll tax that made it a bit better. But we'll still have to tighten our budget, which means spending less and investing less - two things people say we need to do more of to help the economy. Now if every dollar taken from us goes to another family maybe just as much will be spent in the economy - but will every dollar that comes in go back out? How much will be used up in the process of collecting from 5% and redistributing to 95%. Maybe we can cut out the middle man and have Obama just send me the names of the 33 families that need the $500 and I'll send it directly to them. I won't even charge the government for the cost of the checks, and they can reimburse me for the cost of the stamps and the envelopes.

Pennsylvania Mom http://openlettertobarack.blogspot.com/
iVillage Member
Registered: 03-09-2007
Sun, 10-19-2008 - 7:57pm

No we do not know the cost but at least we know that we will have the option.

Jess


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iVillage Member
Registered: 05-06-2007
Sun, 10-19-2008 - 8:00pm

<<I am not sure when or why this "we don't have enough" attitude started for the middle class. I never felt it when I was there.

Chrissy
mom to Aidan 8/21/03
Grayson Blaine 12/30/07

iVillage Member
Registered: 03-09-2007
Sun, 10-19-2008 - 8:00pm

"The group that estimated Obama would cover so many people had previously issued a report calling for a very similar healthcare plan. So it's not surprising they would rate it favorably, the obviously thought it would work."


Yes they came up with a similar plan which gives even more merit to Sen Obama's plan.

Jess


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iVillage Member
Registered: 10-16-2008
Sun, 10-19-2008 - 8:00pm
Isn't the bus boy being paid for work performed? He is a team with the waitress and shares in the rewards of a job well done. This is more like saying the bus boy doesn't earn enough in hourly pay + tips so we'll take from the accountant down the street and give it to the bus boy.
Pennsylvania Mom http://openlettertobarack.blogspot.com/
iVillage Member
Registered: 10-16-2008
Sun, 10-19-2008 - 8:04pm
We know under Obama's plan a family will have to pay something for coverage. If you take the average cost and McCain's credit the cost for a family would be $583/mo. So Obama would have to make it cost less than that for a family plan for it to be better. And we have no idea if it will or won't.
Pennsylvania Mom http://openlettertobarack.blogspot.com/
iVillage Member
Registered: 05-06-2007
Sun, 10-19-2008 - 8:09pm

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I'm not waiting around for anyone to pay for my children's education. But I'll admit that I am not saving for it and that is b/c at this point my choices are literally, feed and clothe my children OR save for their college education. Which one would you say is more important? Unfortunately, the reality is that many families face this same dilemma and I would never say that they are "waiting around for anyone to do it for them". Btw, I think it's great that you are able to save a large chunk of of your income to save towards college, but don't put down others who are not as fortunate as you.


Chrissy
mom to Aidan 8/21/03
Grayson Blaine 12/30/07

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