RSS 2.0 FeedPut Your Refund Into Perspective
by Brad WarbianyGiven that it is April 15th (even if that date doesn’t hold it’s normal significance this year), I figured I’d pose a question to the readers here…
How much did you get back from the government this year?
I did alright, getting about $2K back from them.
Of course, that leads to a secondary question:
How much, in total, did you pay the government this year?
What was it, enough to buy a small appliance? Small car? Small boat? Small airplane?
Did you get your money’s worth for that “investment” in Washington DC? Could you have made better use of that money?
Seriously, if you don’t know how much you paid, in gross terms, you’re like most Americans. Most don’t bother to take the time to understand the actual cost of government. And, when you add in all the different taxes (sales tax, vehicle license fees, telecom taxes, etc), it’s nearly impossible to actually know the true number, you’re always just working with a good estimate.
Pull out those tax forms. Pull out the W-2. Start adding up the numbers: you might be surprised. Or, if you’re like most people, you might be led into a fury of homicidal rage. Ever wonder why tax day is about 6 months away from election day?
How much did you get back from the government this year?
About 700 dollars.
How much, in total, did you pay the government this year?
About 1400 dollars before the refund, 700 after. This does not include sales taxes I have had to pay, but I live in Texas, and there was no state tax.
I think, in sales taxes, I paid about 2K.
Comment by Ted — April 15, 2007 @ 8:46 pmWow, that’s not bad… I was somewhere between “small car” and “small boat”…
How did you manage that?
Comment by Brad Warbiany — April 15, 2007 @ 8:55 pmRight around $8k Fed and $1500 State. $400 too much. Well, it’s all too much, but they let me have $400 back.
Nick
Comment by Nick M. — April 15, 2007 @ 9:07 pmYou guys aren’t including social security or medicare, huh?
Comment by Brad Warbiany — April 15, 2007 @ 9:15 pmThis, of course, makes me one of the despised “filthy rich”, but I paid more in taxes than a family of four living at the poverty threshold earned ($18,850 in 2004). I overpaid by about $550. That’s pretty good, actually. I over estimated my tax bill by less than 3%. That’s my Federal tax bill. I live in Washington, so I have no state income tax. I have an estimated state sales tax bill of over $3,000. On top of that, I pay the maximum Social Security and Medicare taxes. When you include my employer matching, that is more than $14,000.
All told, I paid the Federal and State governments nearly $40,000 in 2006. Imagine what I could have done with that money in my own hands. I could have employed one person full time for the entire year. I could have invested it in start up companies that would create new jobs. I could have bought a car, cash. A very nice car.
Comment by Eric — April 15, 2007 @ 9:18 pmEh, I’m just lazy and my returns are on my computer.
SS = $3500
Medicare = $800
Sales = $1k
Vehicle = approx. $75, I paid for two years in ’05, but I don’t remember exactly how much.
So, all together, I could have bought a new truck that gets better gas mileage and doesn’t make me look like quite so much of a hilljack.
Nick
Comment by Nick M. — April 15, 2007 @ 9:22 pm“How did you manage that?”
I am very very poor. Or I was last year. I did a lot of temp jobs, etc, and spent a lot of time without work, as I was taking care of my father. He had cancer (which is in remission now).
That poverty threshold that Eric was talking about? I was just above it. There were times when I was under it. But, I despise welfare programs, even when I could have benfitted from them. I hate my taxes being used that way, and I hated the idea of using someone elses taxes to support me.
So, I toughed it out, dug ditches, and finally moved back to Texas with my wife. Now, I am working in IT again, trying to get my Cisco cert. I am not well off by any means, but we are working on it.
Comment by Ted — April 15, 2007 @ 9:49 pmHey, My comment about being able to buy a new truck got ate.
Nick
Comment by Nick M. — April 15, 2007 @ 9:57 pmNick,
I was hungry. Sorry.
Comment by Ted — April 15, 2007 @ 9:59 pmNick,
For some reason the spam filter got it…
But I can tell you, as someone who has known you a while, I don’t think a new truck will change that :-)
Comment by Brad Warbiany — April 15, 2007 @ 10:34 pmThen again, maybe the government does have better things than I do to take care of that money.
After all, I’m sure that somewhere there’s an 8-year old with a lemonade stand who isn’t following OSHA regulations. Little Timmy MUST BE STOPPED!
Comment by Brad Warbiany — April 15, 2007 @ 10:35 pmThat’s all we need.
The IRS taxing little Timmy on his lemonade stand, The government enforcing product testing, OSHA safety requirements…
Now that I think about it, there is a whole new world for double taxing.
Tax the parents when they are paid, then tax little Timmy for his allowance. If he does chores to earn it, tax it as income. If he is given it, tax it as a gift.
/sarcasm
Comment by Ted — April 15, 2007 @ 10:46 pmOther things I could have done with my nearly $40K in taxes. Hired two people to work at more than the poverty threshold for a family of four. So, I could have lifted a couple folks out of poverty AND had a full time housekeeper and cook! Good for me, good for the economy, good for those two people. Bad for bureaucrats.
I could have taken a great vacation in Hawaii. Imagine how much economic stimulation that would amount to.
I could have used it as a down payment on a piece of rental property.
I could have bought 20 $2000 suits.
Or a really serious home entertainment center.
I could have hired three people at minimum wage and put the rest in the bank. Alternatively, I actually paid for about 40% of a bureaucrat’s income and didn’t get nearly the value out of it.
Bought two Harley’s, one for my wife and one for me.
Taken a first class vacation in Europe.
Donated to a charity to help Hurricane Katrina victims.
Contributed to organizations that will fight Al Gore and his global warming fascism.
Lent the money, at low interest, to low income folks that need some seed money to improve their situation.
And the list goes on and on and on.
Comment by Eric — April 15, 2007 @ 10:58 pm20k to federal, 6k to state (CA). With that money I could have taken my wife on a vacation. We haven’t had one in three years.
Comment by bret — April 16, 2007 @ 1:54 amBret, don’t forget your Social Security and Medicare taxes. And your employer’s matching contributions.
Comment by Adam Selene — April 16, 2007 @ 9:52 am