I can never say a bad thing about being self employed, however if I had one slight irritation, it’s that I’m responsible for a heavier tax burden now. Forget higher tax brackets for a second, I’m on the hook for the full portion of Social Security and Medicare taxes, minus a small write-off for paying them. The more successful my at-home business becomes, the larger my tax bill becomes. Those are the facts of the case.
Having dinner last night with a lot people I’ve never met, the conversation (I don’t know why anyone would want to talk taxes at dinner) shifted to taxes and success. The married couple sitting across from us starting chiming in on how unfair it is, that they are successful and have to pay more taxes. Dead serious in their convictions, the lawyer and paralegal (who do not work together) suggested that everyone pay the same percentage, no matter how much they make. The suggested number was 20% for everyone, and that number started at 10% if you can believe it. Before I knew it, the table was in agreement. Lower taxes for the wealthy.
Based on their educational backgrounds (Ivy league for most, including the instigating pair, so they say), I assumed they knew a little bit about our economy. A flat tax rate is certainly not the answer to ANY question, and the night quickly became middle class friends of friends complaining about paying taxes. I was convinced now, more than ever, that the wealthy should be legally obligated to pay more taxes. And, if possible, I would prefer if these two specific people pay 99% of their earnings.
Good to get that off my chest, now onto the best money articles from the past week:
Cheap Lunch Box Ideas That Don’t Involve Sandwiches @ The Digerati Life: I always loved having different lunches in school because whenever I make lunch now, it’s always the same. Soup or sandwich over and over. These ideas are quite refreshing.
How To Spend Money You Don’t Have @ Money Smart Life: I’m of the belief that if I don’t have money to spend, I shouldn’t be spending at all. That said, many people love to spend money no matter what, so this article is for you.
Study: Ivy League Colleges Aren’t Worth It @ MainStreet: Proves my earlier point! Well, this study is dependent on a lot of factors, so if you’re getting a scholarship to an Ivy League school, that changes everything.
Financial Considerations of a Second Child @ PT Money: Congratulations are in order to Phil over at PT Money. Earlier this week he brought another girl into the world! That makes the count 3-1 in favor of the girls. Gonna be a tough next 18 years Phil!
Credit Karma vs. Sizzle vs. Credit Sesame – Which One to Choose @ The Sun’s Financial Diary: There are many different credit score services out there and these three are unique in that they are truly FREE.
How to Obtain Free Tax Help from the IRS @ Out of Debt Again: Even though the IRS is known as the least friendly orginization on the planet, they do offer a few tips and tricks to help you with your taxes. All for free, too.
And this past week, we participated in the following carnivals:
- Best of Credit Cards and Money
- Family Finance Carnival
- Carnival of Taxes
- Carnival of Passive Investing
- Carnival of Personal Finance
- Wealth Builder Carnival
Published or updated May 23, 2011.