Browsing Category: "Controversial Topics"
Flat tax, my oppinion
Taxes, the one word that can spark heated discussion among friends, enemy’s and politicians. The United States tax system is so complicated that even our own government has trouble deciphering all the legal codes and laws. Does our tax system need a major overhaul?
A flat rate tax has been mentioned and discussed several times throughout our nations history. There are many proponents and opponents to the flat tax system, both sides having very valid and logical arguments. Would a flat tax system benefit our Nation and is the flat tax system fair to everyone?
Basically a flat tax would ensure that everyone pays the same percentage of taxes on their income. Lets say the rate is 25% someone who makes $20,000 would pay $5,000 in taxes and someone who made $200,000 would pay $50,000. Most flat tax systems allow no or very few exemptions making tax time and tax returns very simple.
I think a perfect system would allow a flat percentage charged to everyone, with very few deductions. These deductions would include children, mortgage interest and charitable contributions (which should be very documented).
Even though I’m not upper class, financially speaking, I don’t think it’s fair to place more of the tax burden on the upper class. Why should the wealthy be penalized for being successful in life. I would hope this new tax system would encourage the wealthy to donate more money to charity and help those who are less fortunate, but I don’t think they should be penalized.
Currently the US Revenue Code is over 9 million words long and contains many loopholes, deductions, and exemptions. Â A flat tax system would help eliminate millions of dollars that slide through the cracks every year. It would save the IRS millions of dollars and thousands of man hours.
No matter what tax system we use there will be pros and cons. There will also be thousands of supporters and just as many protesters. I personally don’t know if we “need” a tax system overhaul, but I think things can be done more efficiently
Once again screwed by government stimulus plan
Alright, I realize something had to be done in order to stimulate the economy, but it seems like almost everything the government has done so far has left my family out of the plan.
The first attempt to help stimulate the economy was in the housing department. The government would allow an $8,000 tax credit to first time home buyers. Well, I guess since I’ve already purchase 3 I’m left out on this government freebie. I’m not sure why this bonus should only include first time home buyers. I’m sure others who were planning on buying a home this year are also discouraged, considering their neighbor will get an $8,000 handout because they waited until our economy was taking a beating to purchase their first home.
So a few weeks ago the government decided to implement another attempt to help stimulate the economy even more. This handout would attempt to “bail out” the struggling American auto industry. The government would issue another credit of $3,500 or $4,500 toward the purchase of a new car. Wait, It’s not for everyone. The car you are trading in has to be a gas guzzling clunker. Once again I’m penalized for already owning a six year old car that gets good gas mileage.
I’m not asking for a handout, I feel very blessed in life. I, however feel like most of the things the government is doing to stimulate the economy is leaving a lot of middle class citizens out. There isn’t really any incentive for us to help stimulate the economy when the packages are not targeted toward us.
Are credit card companies really that greedy?
Driving to work this morning I heard a commercial on the radio for a debt solutions program. The company promises to eliminate your credit card debt or make the payments very mananagable. They scold the evil, greedy credit card companies for trying to take advantage of those poor consumers who have spent more money than they have.
First, I understand everyone has a different financial situation and I don’t know the circumstances of everyone’s debt. However, for the most part debt racked up on credit cards is pointless and there is little or no excuse for massive amounts of credit card debt. It’s not Visa, MasterCard, Discover, or American Express that made you spend $500 for a new summer wardrobe you can’t really afford. Sure they may charge 20.99% interest on that money, but they didn’t make the initial decision to overspend.
We as adults need to have some responsibility for our own actions. Stop blaming the finance companies for being greedy and start taking responsibility for our own out of control spending. I really hat to take up for credit card companies, but quit looking for handouts and start earning a living!
Stealing from a company when you are fired
This morning, I heard on a radio show about the growing number of thefts from disgruntledemployees who are losing their jobs due to the decline in the economy. It’s a very sad time in our economy when so many people are losing their jobs but it’s even more sad that people are turning to stealing to make themselves feel better. Even worse the radio hosts were almost encouraging people to steal from the company on their way out the door.
Millions of Americans have recently lost their jobs due to the recent global recession. Families are finding it hard to make ends meet and pay their bills. For those of us luck enough to keep our jobs, many are being forced to take unpaid leaves from work in order to keep their jobs. Those who have lost their jobs are taking valuable data and even equipment from their former employers.
I realize it may seem tempting to steal on th way out the door, but is this the right thing to do? They may also think that after many years of service the company owes it to them, but haven’t they paid them the whole time?
Companies and businesses are not always greedy entities as they are often portrayed. They, like individuals sometimes have to make difficult decisions to ensure their survival. If you believe it is wrong to steal from friends, family and co-workers then you should feel the same about your workplace.
In times of financial difficulties always remember it could be worse. There are hundreds of thousands of people in third world nations that don’t get one full meal per day. Most of us are blessed to have some type of shelter and food. So before you grab that laptop on your way to the unemployment office think twice and make the honest decision.
Negative amortization (NegAm) loans actually exist
Just when I thought interest only loans were bad I find out about negative amortization loans. Can you believe reputable financial institutions such as banks and mortgage lenders actually allow such a product. A mortgage that actually increases instead of decreases as you pay the payment. Sure you can believe that, it’s a much better deal for the mortgage lender.
A negative amortization loan is a type of loan where the payment on the loan is less than the monthly interest charge. This causes the balance on the loan to actually increase each month instead of decrease. These types of loans are also referred to as a deferred interest or graduated payment mortgage. Most lenders will only allow the negative amortization period to last less than 5 years at which point the loan switches to a normal amortization schedule and the payment increases or the loan must be paid in full or refinanced.
Before you decide to take out a loan on a house do a major budget analysis. If you can’t afford to buy the house, don’t try to work out some creative way to purchase a house you really can’t afford!
Is moving worth saving education costs?
Alright all you financial gurus here is the question of the day. Currently my wife works in a school system in a different county than we live. We live right on the border but if we want our kids to go to school with my wife then we have to pay out of district tuition for our kids to go to a public school. We would get a discounted rate but it would still be $1,800 per year or about $150 per month to send one child there.
We have two children ages 3 and 3 months so we are looking at 12 years of public education for each of our children. So you see the decision I’m face with. At first thought it doesn’t seem to be worth the trouble and moving expenses to pack up our bags and move to another county, but after doing some quick math I realize I have to think deeper about the decision.
If we stay were we are at and start paying the tuition costs in a couple of years we will spend a total of about $43,000 in education costs over the course of their public education. Sounds like a lot of money to me, but wait it gets even bigger.
Let’s assume we decide to move and avoid the tuition costs. I’m going to assume we make a small profit on our current home (should be easy to do) and move into a similar priced home. We would finance about $210,000 over a 30 year fixed rate mortgage at 6.5%. The payment would be about $1,325 per month. Since we would be paying the $150 per month to tuition I’m going to apply that money to our mortgage payment as extra principal payments for five years, this is when my second child would start school so that amount would double to $300 per month. The $300 would continue until my 1st daughter graduates high school and then $150 extra would be applied until my 2nd daughter graduates. Doing this math I would pay off my house 8 and 1/2 years sooner and save just over $92,000. I would of course have to subtract closing costs and moving costs from the profit so about $8,000. After this I would still save over $84,000 from the move?
Sounds tempting to me but I would like to hear your opinions.
Rent to Own – They Own YOU!
I did a little research about the rent to own business. Today there was a special featured on the sales page of Colortyme for a 42″ HDTV as low as $29.99 per week for 117 weeks. Alright can you do the math? The funny part is they actually do the math for you on the same sale page and people still do this stuff!!!
Beating the credit card companies
Can you beat the credit card companies at their own game?
Yesterday I read another blog about a guy who owes thousands of dollars to credit card companies, however he also has thousands of dollars in the bank. He could pay off the credit card balances, but instead he keeps the money in the bank to collect interest, Why? Because most of the credit card balances carry a 0% interest rate. Can you really come out ahead in this game?
Analyzing a famous money quote
Analyzing a famous money quote
According to the Random House Dictionary of Proverbs and Sayings, the phrase “Money is the root of all evil” first appeared in English circa 1000 A.D. The saying originated in the New Testament. âFor the love of money is the root of all evil.â Timothy, 6:10. Samuel Butler has also been credited with saying “The want of money is the root of all evil.” The two quotes basically share the same meaning, but are they true? Is money really the root of all evil?
Dave Ramsey, the real deal?
Dave Ramsey, the real deal?
Dave Ramsey is the famous voice of radio, TV, and stage who talks about financial matters and teaches us the steps to a debt free life, creating a budget, building wealth, planning for retirement, and finally giving to others. He is a great motivational speaker and all of his principals are built around Biblical teachings. The Dave Ramsey plan sounds great but is he the real deal? Does he really care so much about his loyal listeners or has he just formulated a creative plan for his own financial gain?
