Wednesday, December 12, 2012


I met with my tax advisor today. It was not pleasant. As a Realtor, I am paid as an independent contractor and thus receive a 1099. Unlike W-2 employees, I pay my portion of income tax AND "self employment tax" which is typically paid by the employer for a W-2 employee. You really don't know how much tax liability your job creates until you pay all portions out of your own pocket (instead of out of the paycheck before you even get a chance to cash it).

I think this is probably the smartest thing the federal government has ever done. The majority of people don't even think about how much they earned vs. how much they actually get in that check. They consider the actual check amount the amount they are paid. They are happy when Uncle Sam sends them another check in February or March or whenever they file taxes. Some consider it a "bonus". It is not a bonus. It was your money all along. You loaned it to the government interest free for a year. You didn't know that because you only look at the actual check amount each week. You also didn't know your employer paid even more than that just to be privileged to buy your labor. If everyone was responsible for writing a check to the feds each quarter, instead of it occurring automatically each paycheck, I guarantee we would have a more efficient system. Government waste would offend more people. I take it personally now because I know how much I pay in. I look to see where my money goes. I am aware because it hurts me personally to pay it.

I don't mind paying taxes. Really, I don't mind. I am thankful that I live in a country where I can earn a great living. I want to pay for the services I get--defense, roads, schools, etc. I just don't want to overpay for anything. You know that feeling you get when you buy something for $100 and then go into another store and see the same thing for $75? I feel that way when I think about government spending my tax dollars. They pay $125 for something I can get for $60. It makes me angry. Ok. I am done with my rant. Writing really is therapeutic. Have a nice day.

No comments:

Post a Comment