Thoughts, as you prepare your 2018 Tax Returns.

The concept of "withholding taxes” makes us grateful for any refund.

But in the scheme of things "withholding taxes” tend to keep us complacent.

“Withholding taxes” are a relatively new concept for our Republic and should give the thoughtful tax payer pause for thought.

Here's an excellent article , well worth any tax payers time to read..

I just did the 2018 income taxes for a friend of mine who doesn't itemize.

To my surprise, the standard deduction is now $12,000
Last year the standard deduction was $6,350

This change in the tax code will allow him to realize over $600 in tax savings. He is quite pleased, since he is currently struggling financially.

The new Trump tax code has indeed been beneficial for the majority of Americans, including those with financial difficulties as you mentioned regarding your friend.

My taxes look like a phone book, by the time they're done-- and my CPA charges me over a thousand bucks to do them.

I sure would love a simplified tax code that enabled even small business owners to do their own taxes.

Would you release (post) your tax return? :wink:

As soon as I declare my candidacy for president. :slight_smile:

Chelle for PRESIDENT!!!
You got our votes Chelle.

What kind of business do you run?

My vote costs 10 cellnuvo gold

We own a retail store.

How do you manage all that traveling you do when operating a retail outlet?

I have great employees and I leverage technology to be able to telecommute.

I can do anything from a campsite or the passenger seat of our car that I can do when I'm physically at the store. I electronically order our merchandise and do all of our bookkeeping, remotely. I've drank coffee in the high desert of New Mexico while printing out paychecks for our employees, back at the store.

We also have video surveillance, and I can watch what's being rung up at the cash registers, in real time, by mirroring the their screens to my tablet or laptop.

Being a nerd has its advantages. You can work smarter instead of harder. Some people's definition of success is based on job title or annual income. My definition of success is being able to work in my pajamas and still pay the bills. :wink:

I also am lucky enough to be able to pay my bills and enjoy life.
But I must occasionally don a suit and tie and sit through interminable meetings.
But I'm working towards the full- time PJs.:slight_smile:

I lived the corporate life for a few decades, as well. And it took another decade to get our business to where we felt comfortable being away for so much of the time.

It was worth the effort, though. I love having an "office" with mountains and waterfalls around me. :slight_smile:

Is this sustainable?

  1. I just helped a retiree with his taxes. He had approx. $50,000 in total 2018 income. It all came from SS, Interest income and IRA distributions.
    He owns his home clear and free and has more than subtantial assets remaining in his IRA accounts.
    The total he paid in combined Fed and state taxes was a little less than $1,000. That is 2% of his total income.

  2. I just helped my young neice with her taxes. Her total income for 2018 was $17,000 and it was all "earned income".
    She paid a total of $1,200 in combined Fed an State taxes ( 7% of her total income)
    But she also paid $1,300 into the mandated SS/Medicare fund. ( 7.6%)
    So in total she paid $2,500 - (14.6% of her total income).

Disclaimer: I really don't like helping people with their taxes. but happenstance has temporarily put me in that position. I shall extricate myself ASAP.

I think the retiree has already been heavily taxed for enough years. I'm okay with him having a lighter load, after he retires.

And as to the question put forward -- "Is this sustainable" ?


I am not qualified to even attempt to answer this question, though I am curious about the question itself. Is what sustainable?

I agree with @Chelle the retiree should not have to pay more in taxes.

I would rather close loopholes that enable citizens and corporations from paying their fair share.

"Russia May Fine Citizens For Being Overweight"

Perhaps the U.S. should consider this concept.
It may generate enough revenue to allow for the elimination of the "income tax".:wink:

Interesting. Such an iron fist measure could also possibly reduce or eliminate the deficit. I'm no economist, but if people were fined, say, $100 for each illegal pound, then $100 X ( number of illegal tons ) would equal quite a sum. A further incentive for losing pounds would be the cash rewards being offered by Health providers ( I know of a least one ) to customers who lose weight and do other activities to improve their health. Of course these weight mandates would impact the food industry, and a heads up before they were implemented would allow people to shed food industry stocks before they spiral downwards.