It's no wonder we've reached a point where we need to throw out the entire system and put another one in place. Here's an example of why we're going broke and it has absolutely nothing to do with not taxing the wealthy enough.
Today's my day off and a friend asked me to help him file his taxes. Figured it would be a piece of cake because he really didn't work much in 2011 since his small employer was struggling to survive and cut everybody back to part time.
My friend said he just wanted to get an idea whether there was any reason to file early or, if he was just gonna break even... to wait and file in April.
Here's his stats: He earned $8,769.75 and paid in $743.39 in federal tax, $368.33 in SS tax and $127.16 in Medicare tax. No dependents, standard deduction.
Thanks to an "Earned Income Credit" -- his tax refund will be $1117, $374 more than he paid in!
My friend was just hoping to break even. I'm sure he'll be thrilled. All I can say is WTF? No wonder we're going under... this makes NO sense. Our tax laws reward failure and punish success!! How crazy is that?