I bet I am not alone???? 24-26% tax increase, but we just extended the "TAX CUTS" so this would not happen, right??? I guess we didn't tell Civil Service or Military Pay Masters???
Chuck
I see by your hand writing that you are upset. Rest your weary bones, you are not alone. They finely caught up on the fact that just like active duty we are still over paid. Next is to charge us for our Tri-Care-For-Life. Back tracking on every promise they have made to the career minded service member.
Marshall
I think this is at least partially a result of the witholding going back to what it was before the current administration decided we should have more in our paychecks and then catch up at the end of the year. Either way you had to pay the same amount of income tax. Cannot remember when the witholding rate was cut, either late '09 or early '10, but I am not real pleased with the result when doing my '10 taxes. I knew I should have gone in and increased my witholding but was too lazy to do so. I think there was a tickler on this board about it (perhaps Rick M. or Rubber Ducky, but my CRS is kicking in so it could have been anyone).
I would agree with you but last year for tax year 2010 I increased my withholding by another $150.00 for both annuities. Problem is you can not argue with the pay masters, they only know one thing "They said everyones goes up ___% so that is that".
If only I would have known how this was going to play out I would have made some other choices!!
Well a couple od Florida Senators and Congressman have received an e-mail in their inbox as well as the Administration.
Chuck
I just got back from my Post Office. I had a letter in the box from DAFS. My FITW is going from $69.67 to $118.06 a month on my retired pay. The effective date is Jan 29, 2011. That's just about a 70 PERCENT TAX INCREASE>>.. On the back in all caps: "recent changes to the tax law, tax tables and other legislation changed the amount of federal income tax withheld. these changes will be reflected in your retired payment dates march 1, 2011."
Anyone on active duty see any changes for this pay period? on your deposit slip or forecast on this month's LES??
Wasn't there a big fight to get all of the Bush era tax cuts extended including for those making more than a quarter MIL?? I'm guessing this was the expiration of either the bank/wallstreet baleouts or the stimulus tax cuts we got back on - when was it - 2008? Remember around the time of the $600.00 check?
Well, maybe I found something related to the increase in witholding. Went to DFAS to find out what the deal was, then to IRS. Nice little article that says the Making Work Pay withholding reduction (which DFAS used, even though it did not apply to annuties or retirement pay) was not carried over when the other tax cuts were. The amounts quoted were $7 to $50 dollar increases dependent upon how often and how much you get in your retirement pay. Link is attached for those who want to read it.
This is what I warned everyone about last year. However, even though I increased my witholding by the amount recommended by the IRS calendar, I still ended up paying almost $300 in taxes to the IRS.
"People making less than $250,000 will not pay one cent more in new taxes"
I don't think the change in Fed Tax was Bush's thing. I remember the change in my Fed with holding happened in the early part of '09. Same with the $600.00 give back. (Just after I returned to work from Disability). That would make it the present administration. This is not an increase in taxes...it's just not letting us keep it through the year.
I did not adjust my withholdings when that happened, and this year I found that the Navy did not hold out very much on my retirement pay. Of course I do have to pay this year, but I have had use of that money, and invested it....I still have it to give them now. Best part is, I made a good return on it and not them.
Of course this year, my finances have changed conciderably by doing another final retirement in Oct. By my calculations, I can lower or eliminate all together, any withholdings. I should not have to pay any taxes for 2011, and on going. Good planning the past 20 years has allowed this to happen.
The Fair Tax is an idea whose time has come. A consumption tax instead of an income tax, capital gains tax, and various other taxes on business. Check it out at fairtax.org and read the below link of the congressional testimony given under oath to congress.
The Fair Tax is an idea whose time has come. A consumption tax instead of an income tax, capital gains tax, and various other taxes on business. Check it out at fairtax.org and read the below link of the congressional testimony given under oath to congress.
R
+1 on the Fair Tax....let's stop the bloodletting..
Let me tell you how it will be,
There’s one for you, nineteen for me,
‘Cause I’m the Taxman,
Yeah, I’m the Taxman.
Should five per cent appear too small,
Be thankful I don’t take it all.
‘Cos I’m the Taxman,
Yeah, I’m the Taxman.
(If you drive a car ), I’ll tax the street,
(If you try to sit ), I’ll tax your seat,
(If you get too cold ), I’ll tax the heat,
(If you take a walk ), I’ll tax your feet.
Taxman.
‘Cause I’m the Taxman,
Yeah, I’m the Taxman.
Don’t ask me what I want it for
If you don’t want to pay some more
‘Cause I’m the Taxman,
Yeah, I’m the Taxman.
Now my advice for those who die,
Declare the pennies on your eyes,
‘Cause I’m the Taxman,
Yeah, I’m the Taxman.
And you’re working for no-one but me
Whatever happened to the casinos picking up the tab?
Thanks for The Taxman, Tim.
Seems I've heard it before, but still enjoyed it.
Do you know the original author?
Thanks either way.
Yes, a little known guitar player went by the name of George Harrison! Played for a garage band back in the day called "The Beatles"....circa 1966 I think.
The time has come for major reforms and the consumption tax is a great idea. I too have looked into that idea and other than EVERY STATE jumping on raising every tax that could be remotely connected such as Telecommunications of ALL sources, Utilities of ALL types, Transportation vehicles and Fuel of ALL kinds in the spirit of consumption!!!!
CEC
Not only will we deal with an increase in Fed tax, here in Illinois our legislators recently voted in a 66 % increase in State Tax. I predict there's gonna be a multitude of Illinois Democrats looking for new jobs next election.