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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Pennsylvania Mom
http://openlettertobarack.blogspot.com/
Pennsylvania Mom
http://openlettertobarack.blogspot.com/
Hey, I totally agree that there is always someone worse off, and we are better off than most. I am not complaining.
>>> i say its time for the rich to start paying there dues.<<<<
What does this mean to you? If the bottom 1/3 of earners pay no tax at all, and the top 5% pay the majority of federal tax revenues - aren't the rich already paying their dues?
Pennsylvania Mom
http://openlettertobarack.blogspot.com/
<<I don't know how our kids could afford college if they can't even get loans. I put myself through college but I was older, kids going right out of high school have their parents income looked at before they can qualify for anything.>>
-they could go to a community collge and work their way through it? and yes, they probably wouldnt qualify for federal loans. but there are also private loans available. and i will bring up this point again, obama's plan would allow them to qualify for 4 grand each year they provide 100 hours of community service-not a bad deal.
>>>>Well technically your children could qualify for the renewable $4000 college credit offered by Obama if they meet the required 100 hours of community service each year.<<<<
So why would he tax me $16k a year to give me a $4k tax credit? Some years we'll have two in college so that would be an $8k credit. Some years no credit. One year we'll have three in college and we'd get a $12k credit. FWIW one year tuition plus housing at my state school is $22k.
I'm not sure why should the government now be funding part of my children's education? Our family does fine, who would think we need it?
I added it up. We have 6 kids and if they each go to college for 4 years that could give us a $96k tax credit over the years, assuming it stayed in place long enough and ignoring the time value of money. Holy crap. Did I add that up right? Holy crap.
It reminds me of his plan to remove some deductions for businesses, raise payroll taxes for some employees, offer a credit to small business if they provide health insurance, fine larger businesses if they don't and then offer another credit if they create jobs.
Then he turns around and says the tax code is too complicated and we need to simplify it!
http://openlettertobarack.blogspot.com/
Living like I do in my small 3bdrm 2 bath 2 car garage home in North, AL,
The location you mentioned is the important part in your equation.
I really cannot feel too sorry for you. Your family is at the top of the earnings food chain. You have have the luxury of staying home. 95% of American earn less than you and your family and have somehow managed to survive. You could go out and get a job. Your children could go out and get a job. You could save money by sending your child to a community college for the first two years.
I realize it is difficult to lose money via the stock market/mutual funds and other risky investments. If your family needed this money why did you put it in risky uninsured investments? If you had put it in CD's they would have been FDIC insured.
My spouse and I both work. We have worked all of our lives. We did not buy an elaborate home we saved and paid cash for our modest home. We pay cash when we purchase cars. We paid cash for my sons college education.
If you are in danger of losing your home, and cannot pay for children college education, you are living beyond your means and need to take a good hard look at what you are spending.
You are blessed you are making a lot of money. The is not reason that you should not be living on a cash only basis.
I appreciate what you have written and agree.
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