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: 03-09-2007
Mon, 10-20-2008 - 9:49am

Jess


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iVillage Member
Registered: 10-16-2008
Mon, 10-20-2008 - 10:07am

Well McCain's tax credit is specific and applies to everyone. Obama's critisism of McCain's plan is that he is going to tax employer provided health benefits. McCain's reason is that it puts everyone on a level playing field that right now those WITH employer plans get the benefit tax free, those WITHOUT employer plans buy them with after tax dollars. That's the deduction side, not the credit side. The deduction side under McCain everyone is taxed on the benefit, everyone gets the credit. Obama's plan those with employer benefits get them tax free, those without buy with after tax dollars then *some* get a credit.

So it's still true you'd buy them with after-tax dollars EVEN IF you then get a credit, just like it's true under McCain's plan you would NOT get a deduction but you WOULD get a credit.

Pennsylvania Mom http://openlettertobarack.blogspot.com/
iVillage Member
Registered: 03-09-2007
Mon, 10-20-2008 - 10:24am

"Obama's plan those with employer benefits get them tax free, those without buy with after tax dollars then *some* get a credit."


Everyone who needs it will get it.

Jess


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iVillage Member
Registered: 04-03-2008
Mon, 10-20-2008 - 10:32am
It's a shame everyone else doesn't see this... I couldn't agree more.
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iVillage Member
Registered: 10-16-2008
Mon, 10-20-2008 - 10:40am

Yes, but I'm not talking about the credit. Obama offers a credit to those who "need" it whatever that means (it would be better if he gave a dollar threshold so we could quantify it)and we don't know if it's the full premium or part of it, McCain gives a $5k credit to everyone, that's clear. That's one issue.

Whether benefits are included as taxable income on your return is a separate issue. Today, they are not taxable if they come from your employer, but if you have to buy it elsewhere you buy with after tax dollars. Obama has not proposed changing that inequity between those who get employer provided benefits and those who have to buy their own. McCain has proposed treating them all equally. That is the second issue.

Obama criticized McCain for giving a credit but wanting to tax benefits for those on employer provided plans. The same could be said of Obama - for someone buying from his exchange they would be buying with after-tax dollars (only employer provided benefits are tax deductible) and then they might get a credit.

Pennsylvania Mom http://openlettertobarack.blogspot.com/
iVillage Member
Registered: 03-09-2007
Mon, 10-20-2008 - 10:56am

"McCain gives a $5k credit to everyone"

Jess


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iVillage Member
Registered: 10-16-2008
Mon, 10-20-2008 - 12:01pm

Of course it goes to the insurance company, it's to pay the premium. Everyone is treated equally in that some don't get tax deducible benefits while other pay with after-tax dollars.

When I have purchased "family" plans it didn't matter how many kids I had, the cost was the same.

Pennsylvania Mom http://openlettertobarack.blogspot.com/
iVillage Member
Registered: 10-20-2008
Mon, 10-20-2008 - 12:06pm

Maybe All the elected official need to vote for a paycut for themselves instead of raise!

iVillage Member
Registered: 03-26-2003
Mon, 10-20-2008 - 12:14pm

<>


Served their coffee, cleaned the toilets in the office building where they work, took care of their children at daycare, bagged their groceries, stuff like that.

 


 


I disagree with you, but I'm pretty sure

iVillage Member
Registered: 04-16-2001
Mon, 10-20-2008 - 12:22pm

IF the cost of purchasing health insurance and other medical expenses meet a certain threshhold, they become DECUCTIONS on income tax.

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