Look, I know reading about taxes is boringgg. Most people can't do it. However, this is Frankenstein Government. They pay me to fashion articles which are funny and insightful. That's how I know that my regular readers will carry on here in a determined fashion.
The new tax season begins just after this year's election cycle ends. Odd how that works, isn't it? Nobody is really paying attention now to the 2014 tax law changes- but they will. These tax changes are going to be painful and effect nearly all of us.
The great, uninformed masses who wave itty bitty flags, shout USA, USA, and think they are great patriots- will dutifully march to the election polls in a few months and re-elect incumbent Congressmen. They have been doing this at a rate exceeding 90% for as long as I have been alive. They do this no matter how bad Congress sucks. They will receive a little sticker with a flag on it that says "I voted." (That's what they do here) They will be proud of themselves.
Then the zombie voters can stumble through their day beaming like grand patriots- as us enlightened types (FG readers) realize that we have just received another two years worth of tax sodomy thanks to the zombie majority. This is what Adams and Jefferson envisioned?
Those about to be re-elected Congressmen are the same Congressmen that stole trillions of dollars from the national treasury, the same Congressmen that voted Obamacare without even reading it, the same Congressmen who vote themselves giant raises and benefit packages, and they are indeed the same ones responsible for tax laws. Congress writes tax laws.
This year, Congress let several tax "breaks" expire. (I use quotation marks because those "tax breaks" should not have been taxable items to begin with)
In the 1700's, colonists revolted over a paltry 3% tax to the King. "No taxation without representation" was the phrase every one of us was taught in our government grade schools.
Today, my Idaho state sales tax is 6%- twice that amount.
My state tax is generally around 5% of my income. My property tax adds another 3% and the Feds generally get me for around 10% after everything is adjusted. Throw in nearly .50 a gallon for gas tax and all in all- I believe I lose about 25% of my net income per year to those taxes.
I don't want to cover government's force placed insurance programs which I consider to be nothing more than an additional tax- and in the case of our Supreme Court and Obamacare- they indeed agree that it is a tax. For me that tax amounts to 8 grand. That is 500 a mo. in unsubsidized premiums x 12 months plus a 2k deductible before anyone other than me pays a cent. Good deal for someone...else.
I am going to use first person here because I have no idea how bad your tax situation is about to become. This is how it's looking for me.
This year will be the first year I will have to pay the penalty for failing to sign up for Obamacare. Most of us will pay 1% of our annual adjusted gross income. In my case, I just lost another 400 bucks or 1%. Oh, by the way...this tax goes up to 2.5% in following years.
Also set to expire this year are deductions for state taxes. So not only do your assets get seized by the state that you live in- but they are no longer federally tax deductible. That means I have an additional 2000 dollars subject to federal tax. That should cost me another 300 bucks.
Last but not least, the government force places personal mortgage insurance (PMI) on all of their FMA home loans. It is really just a tax. It costs me 1200 a year. This year, PMI is no longer tax deductible. So once again, not only does the government seize my money to insure someone else's investment interests- but I have to pay taxes on money that was seized from me despite the fact that I never had it to begin with. The corporate pirates of America dream of laws like this where they can simply seize YOUR assets to insure against THEIR potential losses. Who doesn't dream of a guaranteed, paid for by someone else, income stream? The American aristocracy does- that's for sure.
Anyway, that's going to cost me another 100-200 bucks in taxes.
Therefore at the very minimum this year, I just lost another 1000 dollars. (I am throwing in a higher tax bracket since my adjustments will be less)
You want to know what really frosts my backside? The people that will go out and re-elect these miscreants to Congress. Many have no skin in the game. They get free healthcare thanks to Obamacare, 47 million get food stamps, and oddly- that guy that pays for their food stamps and their healthcare- cannot afford healthcare for himself.
I'm out of money. Why don't you people just come over and steal some stuff out of my home instead? At least I can get a deduction for casualty and theft losses. They haven't gotten rid of that deduction yet. Just make sure you do it before Dec. 31. I'll leave the front door open for you.
Additional pain for you can be found here: http://money.msn.com/taxes/7-sneaky-tax-changes-for-2014-1
And here: http://www.foxbusiness.com/personal-finance/2014/03/26/key-tax-changes-for-2014-and-beyond/