From Numbers to Politics to Taxes
Wow, does anyone else hate that word “politics”? However, the rub comes that our monetary numbers are currently unequivocally affected by politics. Governmental programs only run based on tax revenues they acquire from “the people”. According to the United States Constitution all Federal taxes levied must be uniform for each citizen across the entire United States. Does that not sound as if it is the current status? Well, except for exemptions, levels set to eliminate paying taxes, rebates, and other loopholes. It is time then to prepare for the 2011 tax season. Get a pen, an iPad, your smartphone, or something to take notes from.
The first step is to reduce your Federal and State withholding from your paycheck. My current suggestion would be to claim 9 dependents on your W4 with your employer. Start with your take home pay, add in deductions such as health insurance and 401K, then divide this amount by your gross pay. Generally the formula should spit out taking home between 90 and 92% of your gross pay. This will reduce your tax refund each year, but it will give you more take home pay and enable you to invest, pay off bills, and improve your financial future.
BusinessHiringToday.com states that by 2019, “40% of the US workforce will be made up of independent contractors or contract-based labor...up from 26% today.1” Employers will be able to pay hirer wages because they will not have to subsidize benefits. In addition, if they deem that you are a liability to the company they will be able to let you go without unemployment insurance repercussions. Doesn't that sound great? The article further explains that most workers will be unemployed much longer than they are today, they will need adaptable skills, and employees will need to be outstanding at what they do.
In order to prepare for this scenario most workers will need to begin preparing a nest egg or “emergency fund2”. If your investments are not making at least 10%, even in this economy, you need to have a very serious heart-to-heart talk with your investment “so called” advisor. If you are not making a 10% return then it is probably because of fees.
My hope is that this article will help you get on the track for future savings in 2010 and 2011.
Thad K Bartley is running for the Kansas House of Representatives in District 101 of Southeast Reno County in 2010. Any suggestions or recommendations made in this article should be discussed with your tax preparer and are not information that is accurate for everyone. Any tax decisions based upon this article are the responsibility of the taxpayer only and not of Thad K Bartley.
You can visit the election website at www.ThadKBartley.com
1.betterhiringtoday.com/tag/hiring-in-a-recession/
2.http://www.daveramsey.com/article/build-an-emergency-fund-fast/lifeandmoney_saving/
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