Not Joe the Plumber, but SAHM
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| 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/

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Well it shouldn't. If we all had defined benefit plans then our employers would be under water in them, and they'd be worrying about having to go out of business if they can't make up the shortfall. They'd end up with huge liabilities on their balance sheets this year due to the market losses (assuming most companies don't invest in CDs to plan for paying out defined benefits, mutual fund type investments would be more likely) which would impact those companies ability to borrow money, grow, hire, make payroll, etc.
Plus defined benefit doesn't work unless you work your whole career in one place, and not many people do that anymore. Short-term workers (a few years) wouldn't qualify for much of a benefit. If I had a defined benefit plan from each employer I'd have plans from more than 10 employers if I qualified at each of them, many of which are no longer in business, each of which would be obligated to give me a very small sum.
http://openlettertobarack.blogspot.com/
Pennsylvania Mom
http://openlettertobarack.blogspot.com/
Your experience is not universal. In my plan, we pay for each child.
I meant, did anyone notice that
"Everyone is treated equally in that some don't get tax deducible benefits while other pay with after-tax dollars. "
Pennsylvania Mom
http://openlettertobarack.blogspot.com/
Even as a family of 5, we have never incurred enough in medical expenses to
>>>So this 5k is only pay for insurance not anything else. Once you pick a provider of health insurance...they get the 5k to offset costs...this is taxed too btw.<<<<
I think that is how it works, and it's taxed whether you have employer benefits or you are buying it on your own so that both groups are paying tax. Of course, if you are in the bottom 1/3 of earners you should have enough deductions and credits that you get a refund of your income tax.
http://openlettertobarack.blogspot.com/
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