Monday, April 20, 2009

Mixed Emotions

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As I was reading this article, Wealth-Less Effect: Earning Well, Feeling Otherwise, I hade very mixed emotions.
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First let me say I don't think $250K makes you "rich". Second I don't begrudge anyone their rights to earn. Third, taxing the "rich" at a different rate is usary and it's social engineering driven, IMnotsoHO.
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But as someone from a background where the most my parents ever made was about $80K, and with my highest household income having been in the low $100Ks, families making $250K should STILL live inside their means.
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from the article,

Ellen Parnell and her husband, Donald Parnell Jr., seem like the kind of well-off couple President Barack Obama has in mind when he suggests raising taxes on families earning more than $250,000 a year. A surgeon at Fort Sanders Sevier Medical Center in Sevierville, Tenn., he drives an Infiniti. They vacation at a beach resort every year.

Yet, right now he is working seven days a week. The car is more than a decade old, the vacation home in Sandestin, Fla., comes at a moderate weekly rate because members of Ms. Parnell's extended family own it. Her family of five would like more room than they have in their 2,500-square-foot home, yet they can't afford anything larger. The downturn has them skittish about paying for renovations.

"I'm not complaining, but the reality is Obama may call me wealthy, but I thought we were just good old middle class," says Ms. Parnell. "Our needs are being met, but we don't have a load of cash to cover wants."

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Well, they are middle-class, but VERY high end middle-class. A family of five, in 2500 sqft, he's a surgeon, she works too. And? Things are tough because they're car is 10 years old? They only get to go to the beach, for vacation, because it's a family owned house? AND?
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Because of the down turn in construction, my younger son lost his $50K blasting job in Hotlanta. He and his stay at home wife, and those wonderful grandchildren, moved in with us. They're savings were exhausted. My vehicle is 19 years old, my sons family's cars are 11 and 14 years old. We've had NO vacations in several years, no beach house is available, there's no money for vacating, and for 9 months, 6 of us, 4 adults, and two kids lived in a 1018 sqft, two bedroom, two bath apartment, on WAY less than $60K. And I still managed to put some money in savings every month.
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I think Ms Parnell needs to look around.
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For the Parnells, their perception of themselves is based on the math. The value of their house is down $60,000. Ms. Parnell says the couple's gross income last year was about $260,000. Taxes, premiums for medical care and deductions for Social Security and their 401(k) contributions cut the gross to about $12,000 per month. The family tithes $1,300 a month at their church. Their mortgage, second mortgage and payment on land they bought is nearly $4,000 a month. Other expenses, including their family car payment, insurance and college funds, as well as basics like food, utilities and donations to charities, leave them with about $1,200 left over each month.
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Ms. Parnell says. "I can pay my mortgage and I can buy some clothes. I'm not going without, but I'm not living a life of luxury."

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I think, in this economy, having both jobs, having the ability to make your mortgage payments, keep making your tithe, make the land payment, make those college fund payments, go on vacation and JUST worry about the economy, IS IN FACT LUXURY.
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This IS the problem in America, too many people NOT realizing just, how, fucking, good, they, have it!!
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Much Chagrinned Schteveo

20 comments:

eat me said...

aw - quite your complaining, Obama has lowered your taxes by $400 a year - you are now one of the rich.....take that 400 & buy a new car

Spider said...

Hey, for $400. i'll sell you a bridge here in Brooklyn!

Learn to live within your means, whatever they may be.

Spider said...

Yo Poots, how ya feelin bud?

BOW said...

They work hard and should keep what they earn, no matter how much it is.

Schteveo said...

Agreed, agreed, agreed, agreed...but at what point do you look around and say, "...SOB, I'm doing OK. Especially compared to those poor bastards that are losing jobs and houses!!"

I'm not one for settling, but people never look at the up side of life.

CTtaxpayer said...

Preach, Brother Bill!

Anonymous said...

but but but

how are we going to pay for the cheese?

Schteveo said...

Well....I guess my point was either TOO small or TOO obtuse to be made. I'm surprised.

Heidi said...

What? That no one is ever happy with what they have? I'm with ya.

Together, my husband and I make in a year what some people would consider to be a beginning salary (for one). We don't live in a fancy house. The last vacation we took was our honeymoon - many years ago. We don't have "luxury items", we don't eat out often and we don't complain about it. We do live comfortably enough, have plenty of food on the table and can stash a little into savings each month. Do we eye things that we don't have? Sure. But we're not about to finance something that we can't afford to begin with.

Schteveo said...

Thanks Heidi, I thought I was a lone voice, crying in the wilderness.

I'm with you, there are things I'd like to have, but I'm not willing to pay to finance them. It kills me to hear family and friends crow about getting 10% or 20% off some "thing" THAT THEY CAN'T DO WITHOUT, then they say they put it on a charge card!!!

As I said, I think everyone should work toward getting ahead. But you gotta look around while you're working. Success is a journey, not a destination. And I never thought success was defined by wealth or TV size.

The old hippie in me dies hard I guess. That and I know too many happy "poor" people and too many miserable "rich" ones.

Svenska said...

Steve & Heidi - I'm with you. I don't make much - have a very small house, drive an old car, only debt is my mortgage. And I thank God every day for what I have instead of whining about what I don't have.

Schteveo said...

Hmmm...Heidi, Svenska and Schteveo, only 3 realistic people on board today.

BOW said...

It's not up to anyone else to decide what they are comfortable with. And how much people should donate anf to whom. Likewise, it is exactly those people with the gazillions who provide opportunities for others to earn; to be examples of what hard work and taking chances will bring.

Why is it if I succeed, everyone wants to divvy it all up, but if I fail, it's all on me?

Schteveo said...

Bill,
you're missing the point.

In the current economy, this Mrs Parnell, and millions of her brothers and sisters, are worried about the economy, WHILST, she and hubby STILL have jobs, kids in private school, money to pay for the mortgages, the second mortgage AND a piece of land, their tithing to the church hasn't ceased, and she's buying clothes. BUT she's worried about how hard she and hubby are working to keep it all going. And what's her main worry?

BOHICA is going to raise her taxes because she and her SURGEON husband make over $250K.

My point, old buddy, is that far too many people are STILL in that tax bracket and evidently have been watching 'merican Idol, instead of the news. They've missed the simple fact that many of our neighbors have lost their $250K jobs, their homes, cars, retirement funds and the kids are in public school.

As unfair as I think the tax increase is, I'd rather be worried about being in the group that gets the tax increase, than be the family who's lost it all.

The tax increase sucks Bill, but there is an upside to it. Some people are STILL making the money that they were making before the economy went south!! I'm amazed at how far up their asses their heads seem to be.

Anonymous said...

Schteveo, and others; could you please dispense with the saying
'it's gone south' when something untoward happens or something breaks? What has the South done to deserve this 'accolade'? Maybe in todays society, it would be more apropo to say 'it's gone to D.C.'whenever TSHF.

Spider said...

Schteveo said...
Hmmm...Heidi, Svenska and Schteveo, only 3 realistic people on board today.Am i being ignored?


"Learn to live within your means, whatever they may be."

BOW said...

Steve; the point I'm making is that while this family is still living what we would consider a decent lifestyle. there is much more to consider.


Before all hell broke loose with the economy, I was in a similar, yet more modest situation than these folks. and even though my personal lifestyle has me in a modest home, 10 yr old car, etc....I had to lay off my entire staff. so what is actually lost? The ability for me to hire people who now depend on the same money sucked out of me while producing nothing. additionally, I find it ironic that the gov't takes my money that I can reinvest in my business and provide jobs with, gives it to foreign enemies, domestic parasites, and to banks who lend some of it back to me and charge me interest!

Svenska said...

If someone works hard, gets a higher degree of education and makes more money than I do - more power to them! I don't think the gov't should be allowed to just come in and take it away to give to some slacker. And I'm certainly not asking the gov't to give some of it to me just because I made the decision to have less material wealth and more time to be a Mom and to weed my own garden. We all make certain decisions about how we want our lives to be, and then we live the consequences of those decisions. And unfortunately, higher taxes can be one of the consequences of some lifestyle choices.

PS - Did that make any sense - or was I rambling again?

BOW said...

they are not mutually exclusive

Schteveo said...

Anon,
I'm FROM the south, of the U.S. that is. I consider myself a southerner, take pride in it, defend the south from people who consider anyone from below the Mason-Dixon a slack jawed yokel. Screw them!!.

But when I say "gone south", I mean in a metaphorical, gone to hell in a hand basket sense. Not as in, left NJ, went to GA, which means "bad", gone south.


Bill,
I hate that these stupid liberals think they are helping. But the difference as I see it, YOU get it, Mrs Parnell doesn't. And the millions of Mrs Parnells, and Mr Parnells, out there DON'T.

And the sense that private schools, two jobs and a piece of land on the side are the "norm", given the economy, is out of touch.

She (they) should be counting her (their) blessings that they've kept the jobs, the mortgages, etc, etc this long.

Yes, the Parnells are getting screwed, but she doesn't get why, or who, or how. You do.

I can't find it, but what's the % increase for these people. How close to the absolute limits of your income do you spend monthly, that a tax increase pushes you over the edge?

If you took my above missives as a shot at everyone who is getting taxed, I'm sorry, that was not my intent.