Obama: The Gift That Keeps On Taking

How do you provide increasing government benefits with a shrinking workforce? You tax the people who work twice. Let me explain how this happens during tax time.

Back when I had a good job with good benefits, I put ten percent of my income into a 401k. Figuring that I would be working for a long time I put forty percent of the savings into tax deferred savings, the other sixty percent I paid taxes on.

My logic was to pay the taxes then and get it over with. Now that I am making less, and of age to collect, I took a disbursement. Unfortunately I had to pay taxes on the whole amount. It used to be that a 1099-R would record the the ratio of pretax and post tax savings were dispersed. Two years ago the government removed that record from the 1099-R.

To avoid having to pay taxes twice, I would essentially have to have all the records of my investments and sue the government. Of course I am still working, so I do not have the time, or money, or all the records to use the government.

The is the second time that I am not happy with the IRS. I am involved with a very small non profit, six years ago the IRS made many unnecessary demands for documentation with dire threats of incarceration. A complete waste of my time. I was not impressed.

Taxed twice for working, and trying to plan ahead. Not impressed at all.

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One thought on “Obama: The Gift That Keeps On Taking

  1. Well, IRS is probably the most visible and blatant but during the last eight years, when the aggressive, agenda driven bureaucrats in Washington had the sense that intrusive government was OK with the boss, they just got too openly aggressive. Let’s hope that having the new president in place will change a lot of their attitudes. After all, their number one job is keeping their job.

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