by Mary Pitt
February 15, 2009
Just three weeks after Barack Obama was sworn in, we are barraged with complaints because he has not yet wiped out all the vestiges of the Bush administration from the environs of Washington, D.C. We are daily confronted by newspaper items, editorials, and blogs telling us of his shortcomings and failure to correct all the bad Department of Justice decisions, all the illicit Executive Orders, the no-bid contractors, to withdraw all the troops from Iraq, and to restore our country to a state of peace. And yet, the polls show an unprecedented approval by the people!
This is, above all, a man who is measured and prudent in his thinking and has established his priorities for action. He has chosen first to put right our economic state, no insignificant or simple task. Believing in our tri-partite system of government, he allowed the Democratic Party in the House of Representatives to write the necessary legislation, to offer it for a vote, and send it to the Senate where it was amended, passed, and sent to Conference. It moved through the process in record time and is within his recommendations as to the amount of money involved.
This is the way it should be done, people! Are we all so accustomed to the Bush system of change that we expect the President to issue an order and both parties match in lockstep to issue a blank check as they did in his request for authority to "handle" the aftermath of September 11, 2001? Now, that really worked, didn't it?
In the meantime, behind the scenes, there is a small army of people working feverishly; going through records and subpoena-ing those that are lacking, compiling data, uncovering facts, and putting information into presentation form that will be given his attention in the order of his pre-determined order of priorities. Buried in those piles of papers are things of which we, the people, have known nothing and we can expect to find several surprises there which President Obama will deal with as they arrive.
Meanwhile, the newly-appointed Secretary of State and the various Ambassadors are traveling all over the world, renewing acquaintances with foreign leaders and establishing bases for official talks to try to correct some of the ills of the rest of the world. Shifts have been made in the accents on the tasks of our troops around the world and in the personnel involved in directing them. There is much yet to be done there and it will be done in due time.
So, what are all the complaints about? Some of the Cabinet choices had to be withdrawn before being confirmed. Has that never happened before? The Vice-President has a bit of a mouth problem, not much of a surprise and at least, he is not running a sub rosa spy program from his basement! Health care and Social Security problems have not yet been solved. Again, not a surprise inasmuch as several administrations have failed in that effort and the President determined that the economy, (the number one concern of the voters), was the most important thing to do first.
The largest and loudest complaint is that President Obama has been unresponsive to the demands for investigation of the previous administration for their many instances of illegal actions and violations of the Constitution. His answers have not been sufficiently decisive for those who feel that this should be done as soon as possible. Suspicions are voiced that the President is "in cahoots" with the "Bush criminals"! Yet we have no knowledge of the tasks that have been assigned to the Department of Justice other than the fact that we have been told that, if and when the necessary information reaches his desk, he will be ready to respond.
And yet, when the Congress began to lag in the passage of the economic stimulus bill, he turned to the people. Not just to any people and not just to Democratic strongholds where he would be assured of support but the states where he lost to his Republican opponent. The audience was not vetted and there was no "protest zone". It was come-one-come-all and the cheers were as supportive as those on his campaign trail. It may not have caused the bill to pass but it certainly did not hurt the effort when Congress was exposed on the evening news to the faces of their own suffering constituents as they voiced their pleas for relief.
This is a different kind of President. He is probably the most intelligent and, so far, appears to be the most thoughtful and mentally-organized person to hold the office in a very long time. He can carry the weight of all the troubles of the world on his shoulders and yet be able to "put it away" and enjoy a fast game of basketball, take the kids to the beach, and treat his wife to a romantic dinner for Valentine's Day, and then come back to work refreshed and ready for action. He may not be Super Man but he comes close.
The point that the complainers still just don't get is that Barack Obama was not elected to the presidency simply because we wanted to get rid of the Bushes by changing the person in the White House. The "revolution" was not only against George Bush; it was against the "business as usual" of the Washington culture. We sat through eight years of watching the Democrats in Congress roll over and act in a "spirit of bipartisanship" while Bush and Company raped our nation and destroyed much of the world. Retribution can wait. First, the welfare of the people must be restored and the working class put back on their feet so that our neglected infrastructure can be restored and we can, once again, be a proud nation and a leader of the free world.
Let us give the man time, stop carping and nit-picking, and give him a decent amount of time to show progress. It is a Herculean job that cannot be done overnight. It's the least we can do, considering what he is trying to do for us.
The author is a very "with-it" old lady who aspires to bring a bit of truth, justice, and common sense to a nation that has lost touch with its humanity in the search for "societal perfection".
Sunday, February 15, 2009
Sunday, February 08, 2009
The Truth About Your Income Tax
by Mary Pitt
February 8, 2009
As the spouse of a working man, often in remote areas and long before you would find an H&R Block firm within easy driving distance, the job of filing the annual income tax forms fell to me. As the rules changed, it was necessary to study the instructions every year to remain current and legal. While that may seem difficult to many, a bit of initial concentration should get one through it. I did it with a bit less than a high school diploma at that time.
As the result of this responsibility, I became aware of the evolution over the years and can see the pattern of the changes that occurred with the many "reforms" instituted during the Republican administrations. It has always been an article of faith within the party that taxes were a nuisance that should be visited only on the private wage earners and every effort at "reform" will demonstrate their efforts to shift the burdens to the working class. This was accomplished on the pretext of "simplifying" the reporting forms. In fact, it is now so "simplified" that you do not even know how much your tax really is or the means by which it has been increased.
While I make no claim to be any kind of an expert and am speaking only from personal experience, I will attempt to delineate some of these changes that have been made in order to deprive the working class of exemptions and deductions and how their loss impose the greater tax burden upon them while lessening that borne by businesses and the wealthy.
Exemptions:
In 1949, when I was first assigned this task, a family was allowed a personal exemption of $600 per year for the support of each child. Compare that figure with the allowance this year and then compare that figure to the deflated dollar and it will be obvious that this deduction has been radically cut.
Taxes to Other Entities:
Until recent times, the amount of income taxes paid to the State in which you lived was an allowable deduction as was the sales and local tax, based upon a chart which was tied to your total earnings. You were allowed to deduct state gasoline taxes based upon the mileage readings of your automobiles. This alone, is a large factor in any family budget.
Interest payments:
Another large tax deduction that has been lost to the interest of "reform" is the one that allowed people to deduct payments for interest paid. This included interest on your home, your car, credit cards, and store charges for major purchases such as furniture. You could either include statements from your creditors or use the chart on the sliding scale. This deduction, except in special circumstances, is now denied to the working class while businesses are still allowed to deduct it as a "cost of doing business".
Medical Expenses:
All medical expenses, including prescription medications and medical insurance premiums were allowed in excess of 3% of gross income. You could also deduct any medical equipment, appliances and supplies that were prescribed by a physician and any payments for disability received from privately- or employer-paid insurance were exempt from taxation. If your medical insurance was paid entirely by your employer, no accounting at all was necessary
I am sure that there are many other exemptions and deductions that may have existed that have quietly disappeared over the years but they do not come to mind at this time, (or perhaps I never had occasion to use them), but these alone would account for a major part of the expenditures of the average family and greatly their restoration would reduce the tax liabilities of the working class.
Where did these privileges of the working class go and why? It's simple. In effect, these "reforms", instituted on the pretext of making the tax report more simple, effectively increased the amounts of taxable income and thereby increased to taxes on the average wage earner while preserving the privilege of the ruling class. Even the deductions from our pay checks for Social Security reflect our second-class status. While most of us pay the same percentage of our entire income for this purpose, those who are paid amounts beyond our wildest dreams are allowed to stop contributing. This "cap" is possibly the only tax computation that is adjusted for inflation and that only after near-destruction of the system.
Do not listen to those calamity-criers who are bellowing for a "fair tax" which will further shift the "burden" from the backs of the wealthy, or even to those who tout a "value-added tax" which will radically increase the price of everything that we buy. They tell us, "This would be so easy that you won't even realize that you are being taxed", but what they mean is that THEY won't realize it because THEY will not be paying their fair share! This is their Valhalla and what they have worked toward for all these years, the total exemption of their own class from the burden of paying for our government, their privileges, and any wars into which they wish to send our children.
We have recently accomplished the task of returning to the people the privilege of running our own democracy as The Founders intended but we must not relax. We must hold that responsibility in our calloused fists and wield it wisely. We must get on the backs of our representatives and insist that they keep our welfare and our will constantly in mind if they want to keep their jobs. Any resistance must be met by a wall of voices, using the words of our new President, "WE WON!"
The author is a very "with-it" old lady who aspires to bring a bit of truth, justice, and common sense to a nation that has lost touch with its humanity in the search for "societal perfection".
February 8, 2009
As the spouse of a working man, often in remote areas and long before you would find an H&R Block firm within easy driving distance, the job of filing the annual income tax forms fell to me. As the rules changed, it was necessary to study the instructions every year to remain current and legal. While that may seem difficult to many, a bit of initial concentration should get one through it. I did it with a bit less than a high school diploma at that time.
As the result of this responsibility, I became aware of the evolution over the years and can see the pattern of the changes that occurred with the many "reforms" instituted during the Republican administrations. It has always been an article of faith within the party that taxes were a nuisance that should be visited only on the private wage earners and every effort at "reform" will demonstrate their efforts to shift the burdens to the working class. This was accomplished on the pretext of "simplifying" the reporting forms. In fact, it is now so "simplified" that you do not even know how much your tax really is or the means by which it has been increased.
While I make no claim to be any kind of an expert and am speaking only from personal experience, I will attempt to delineate some of these changes that have been made in order to deprive the working class of exemptions and deductions and how their loss impose the greater tax burden upon them while lessening that borne by businesses and the wealthy.
Exemptions:
In 1949, when I was first assigned this task, a family was allowed a personal exemption of $600 per year for the support of each child. Compare that figure with the allowance this year and then compare that figure to the deflated dollar and it will be obvious that this deduction has been radically cut.
Taxes to Other Entities:
Until recent times, the amount of income taxes paid to the State in which you lived was an allowable deduction as was the sales and local tax, based upon a chart which was tied to your total earnings. You were allowed to deduct state gasoline taxes based upon the mileage readings of your automobiles. This alone, is a large factor in any family budget.
Interest payments:
Another large tax deduction that has been lost to the interest of "reform" is the one that allowed people to deduct payments for interest paid. This included interest on your home, your car, credit cards, and store charges for major purchases such as furniture. You could either include statements from your creditors or use the chart on the sliding scale. This deduction, except in special circumstances, is now denied to the working class while businesses are still allowed to deduct it as a "cost of doing business".
Medical Expenses:
All medical expenses, including prescription medications and medical insurance premiums were allowed in excess of 3% of gross income. You could also deduct any medical equipment, appliances and supplies that were prescribed by a physician and any payments for disability received from privately- or employer-paid insurance were exempt from taxation. If your medical insurance was paid entirely by your employer, no accounting at all was necessary
I am sure that there are many other exemptions and deductions that may have existed that have quietly disappeared over the years but they do not come to mind at this time, (or perhaps I never had occasion to use them), but these alone would account for a major part of the expenditures of the average family and greatly their restoration would reduce the tax liabilities of the working class.
Where did these privileges of the working class go and why? It's simple. In effect, these "reforms", instituted on the pretext of making the tax report more simple, effectively increased the amounts of taxable income and thereby increased to taxes on the average wage earner while preserving the privilege of the ruling class. Even the deductions from our pay checks for Social Security reflect our second-class status. While most of us pay the same percentage of our entire income for this purpose, those who are paid amounts beyond our wildest dreams are allowed to stop contributing. This "cap" is possibly the only tax computation that is adjusted for inflation and that only after near-destruction of the system.
Do not listen to those calamity-criers who are bellowing for a "fair tax" which will further shift the "burden" from the backs of the wealthy, or even to those who tout a "value-added tax" which will radically increase the price of everything that we buy. They tell us, "This would be so easy that you won't even realize that you are being taxed", but what they mean is that THEY won't realize it because THEY will not be paying their fair share! This is their Valhalla and what they have worked toward for all these years, the total exemption of their own class from the burden of paying for our government, their privileges, and any wars into which they wish to send our children.
We have recently accomplished the task of returning to the people the privilege of running our own democracy as The Founders intended but we must not relax. We must hold that responsibility in our calloused fists and wield it wisely. We must get on the backs of our representatives and insist that they keep our welfare and our will constantly in mind if they want to keep their jobs. Any resistance must be met by a wall of voices, using the words of our new President, "WE WON!"
The author is a very "with-it" old lady who aspires to bring a bit of truth, justice, and common sense to a nation that has lost touch with its humanity in the search for "societal perfection".
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