It turns out that despite my best efforts to be accurate in doing my tax returns the year my mom passed away, I missed a few of the guidelines and Turbo Tax didn't alert me! So I was short by a few thousand dollars! That was a painful discovery but luckily I had saved a lot of that money. Back then I decided I needed some money management guidance so I consulted a professional who was mortified that we didn't have any money saved for retirement! So Mr. Pete and I (being older, wiser and a bit more seasoned) started retirement accounts! The money is in there to take care of us when we are old and gray and not wanting to burden our children or society - and now it will be going to Washington DC.
That got me thinking more and more about taxes and redistrubution and the economy on a more personal, micro level if you will.
My money will now be disappearing into the dark hole that is the federal government. I will never see it again unless it comes back to me in a few years as an entitlement.
But if I got to keep it - oh the things it could have done!
Grow interest in a retirement account - which would make it available for my bank to use for things like loans.
Pay for piano lessons- employing one piano teacher!
Pay for other music lessons- employing several music teachers.
Buy a good used car for Calvin.
Buy new tires for other vehicles.
Be used for a vacation get away for me and Mr. Pete - and as we usually vacation not far from home in the Great Lakes area - helping those local economies!
Pay for home improvements - like painters or carpenters.
Replace old computers.
Be given to charities and ministries of our choice.
Pay for medical tests and exams not covered by my insurance.
Help Sam and Calvin with higher education costs.
Gosh the possibilities were endless! But the powers-that-be think they know better. So I will have to write a big check and send it off.
This is Obamanomics- and a great example of why our economy remains stagnant and how taxing actually hurts the economy.