I usually save my instruction on taxes for mid-April, but with the new legislation passing yesterday, I figured it was appropriate to do a bit of teaching on what all of this might mean. When it comes to getting screwed, my wife and I are the poster kids for abuse from the government. We have no children, no debt, and no medical expenses; and since we make a decent income, we get virtually no deductions outside of our charitable giving. This is one of the many ways in which those of us who make wise life choices get royally hosed by Uncle Sam. You're welcome, America.
Anyway, here's what happens when regular folks have more money in their pockets. Through some recent promotions and bonuses, my wife and I have had a boost in income in recent years. With that extra money, we were able to make some repairs and upgrades to our home. We also decided to pay for a landscaping service, after years of trimming our own trees in sweltering Phoenix heat. We then donated more money to various religious, educational, and social institutions. Do to some busier schedules at work, we also ate at more restaurants this past year. We were able to put extra money into our savings and investment accounts. We were even able to splurge on a few special gifts for each other, which we otherwise never do.
Look at all of the growth that occurred when we had more money. We gave work to a contractor, who actually was able to hire more guys because of all the work we gave him. We gave additional work to landscapers. We gave additional work to waiters and restaurant employees. Many of these workers tend to be young, non-college educated, and often immigrants--the very people who need work the most. We invested more money in our future so we won't be so reliant on Social Security and Medicare when we get old, which will save future taxpayers money. And we helped support people doing all sorts of helpful community outreach activities. All of that economic "trickling" occurred because we had a little more money available.
Tax cuts serve the same purpose as a bonus--we have more money in our pockets. When the government lets us keep our own money, rather than confiscating it, we do things that help others, either through employment or donation, and we help ourselves be more independent. Great things happen when we get to keep what we've earned. Supporting tax reductions is ALWAYS the best economic decision a free citizenry can make.
Anyway, here's what happens when regular folks have more money in their pockets. Through some recent promotions and bonuses, my wife and I have had a boost in income in recent years. With that extra money, we were able to make some repairs and upgrades to our home. We also decided to pay for a landscaping service, after years of trimming our own trees in sweltering Phoenix heat. We then donated more money to various religious, educational, and social institutions. Do to some busier schedules at work, we also ate at more restaurants this past year. We were able to put extra money into our savings and investment accounts. We were even able to splurge on a few special gifts for each other, which we otherwise never do.
Look at all of the growth that occurred when we had more money. We gave work to a contractor, who actually was able to hire more guys because of all the work we gave him. We gave additional work to landscapers. We gave additional work to waiters and restaurant employees. Many of these workers tend to be young, non-college educated, and often immigrants--the very people who need work the most. We invested more money in our future so we won't be so reliant on Social Security and Medicare when we get old, which will save future taxpayers money. And we helped support people doing all sorts of helpful community outreach activities. All of that economic "trickling" occurred because we had a little more money available.
Tax cuts serve the same purpose as a bonus--we have more money in our pockets. When the government lets us keep our own money, rather than confiscating it, we do things that help others, either through employment or donation, and we help ourselves be more independent. Great things happen when we get to keep what we've earned. Supporting tax reductions is ALWAYS the best economic decision a free citizenry can make.