Just Plain Depressing...

[Jeff In Milwaukee]

In my spare time, I do taxes for a large income tax service (I can't name any names, but their first initials are "H" and "R"). So anyway, I'm working alone this afternoon when this youngish guy comes into the office to get his taxes prepared.

He makes about $30K a year, and on this salary he provides support for his girlfriend and her two children from a previous marriage. They've been together for three years now.

Under the previous tax law, this guy could claim his girlfriend and the two kids as dependents (she has zero income), file head of household, and get all the child tax benefits (like child tax credit).

But because of the Working Families Tax Relief Act of 2004, this guy learns that while he can still claim his girlfriend, he can no longer claim the two kids (or get the tax benefits). And he must use single filing status, not the more beneficial head of household status.

When I explain this to the guy, he goes absolutely nuts (not at me, mind you). He finds out that his $5,000 refund is now going to be only $1,000 -- which is pretty significant when you're the sole provider for your working class family. He's pissed.

"What can I do about it?" he asks.

"Get yourself a better congressman," I tell him. "It's his fault. Congress writes the tax laws."

I live in the 5th Wisconsin Congressional District, currently served by Jim Sensenbrenner, a poster child for religious fanaticism.

So the guy and I talk for a bit, and I tell him how it's a damned shame these congressman take millions of dollars in campaign contributions and then reward their rich friends at his expense.

"They eliminate the estate tax, but squeeze you half to death," I tell him.

"Oh, I don't have a problem with them getting rid of the estate tax," he says. "A rich guy ought to be able to give his money away without the tax man getting involved."

Sigh...

As long as they're happy to be sheep, they really shouldn't complain when they get sheared.

[Deja Q]

1. Then he'll have no problem lumping the $4000 loss.

Or get his sorry ass married; he should be so lucky.

[Jeff In Milwaukee]

2. ???

[BlueIris]

5. I believe Hypno was pointing out that your client may have been

taking his hetero-privilege for granted. Gay folks still not being allowed to marry in most states and all.

[Jeff In Milwaukee]

8. I gotcha...

Working sixty-five hours a week this time of year, by synapses don't always make the connection. You're right, however. It does seem that this law is fundie-inspired to punish the guy for not being married.

[NMMNG]

3. Probably one of those twits who thinks he's going to be bloody rich

one day. So he favors laws that cater to the rich, because they'll be good for when he's rich. :eyes:

Darn fool.

[La Lioness Priyanka]

4. its buying into the dream...that someday he too will have an estate

to leave

[Arugula Latte]

6. Sensenbrenner -- what a fucknut!

Hate him hate him hate him !!!!! :grr:

[deadparrot]

7. .

"Don't forget that most men would rather protect the possibility of becoming rich than face the reality of being poor."
--"Cool, Considerate Men," (from the movie/musical 1776)

[Jeff In Milwaukee]

9. That's what we're up against...

It's not enough that the right-wing lies to distort reality. We have a significant part of what should be our base that won't accept reality whether it's distorted or not.

[elehhhhna]

10. If he married the gf will he get the bigger refund next year?

And if so please advise him to ADJUST his withholding. 5K out of 30 is A LOT.

[Misunderestimator]

12. Yeah.... that's pretty wild.... And that's only what he would have gotten

back... meaning they must have withheld a HELL of a lot more. Doesn't really add up in my head.

[Jeff In Milwaukee]

14. It's not the withholding...

The $1000 he's getting back is withholding. The rest is refundable child tax credit ($2000) and just a bit of the Earned Income Tax Credit. These "refunds" go back to working poor families even when they have no tax liability.

[Misunderestimator]

11. Wow. Well, I guess he'll just have to get married now.

At least he can. Maybe he's expecting an inheritance someday? What a fool.

[Jeff In Milwaukee]

15. I would be differenct if he was Warren Buffet's kid...

Actually Buffet is opposed to abolishing the estate tax.

[tjdee]

13. My refund was about 600 less than last year.

I was pretty pissed too. I did them myself, and it looks like I might go to umm...H and R something to see if they can squeeze a bit more out. For some strange reason I owe my state $300 so I think I did something wrong (and have bought nothing big/got any huge income thing/etc.).