Two Retractments

First, everyone, it turns out we are not buying our condo. We had the inspection done, had some good honest discussion, and ultimately decided to terminate the contract. We were within our 10 day "no questions asked" ability to terminate. Sad, yes, but we will be renting another couple of years until we can afford a place we want near a good school.


Second, I do need to correct and clarify information in respects to my "tax training" post. I never want to mislead anyone and if I ever post something that turns out to be incorrect, even in part, I will be the first to admit it and make sure you all know.

First, it is true that if the Bush Tax Cuts are allowed to expire we will have prior 2001 tax rates which were 15%, 28%, 31%, 36%, and 39.6%. They have been for the past 9 years 10%, 15%, 25%, 28%, 33% and 35%. What will happen is the 10% bracket would disappear all together, dissolve into the 15% group, and the rates would be 15 stays at 15, 25 to 28, 31 to 33, 35 to 39.5. This is where I made an error, assuming 15% would jump to 28%. So no, you won't see a 13% jump to 28%, just a 3% jump to 28% and only because you've already been paying in the 25%. Although I certainly doubt any of you are feeling much relief.

Here is where and why there is room for speculation and why you will hear several different claims about 2011 tax rates. First, Obama has proposed in his 2011 budget to keep rates where they are for middle class earners, extend some of the tax cuts. They would still go up for high income earners. However, his budget has not been approved yet. Second, because of inflation and other factors, no one knows yet where the exact cut off point at which one will jump into the next tax bracket will be placed. I have seen several tables that speculate where these levels will be. The table I used to get my 28% $70K number had adjusted 2001 cut off points for 3% inflation. Another table brought to my attention had the 28% mark estimated at as low as $57K for married joint filers, even worse.

Here is a quick lesson in taxes for everyone that you might find useful: these tax rates are called marginal rates. Our tax system is called a progressive system, meaning the more you make the higher percentage of your income you pay. This is an easy way to explain it (note all numbers and rates are fictitious): You live in a country that has rates of 10% for $0-$10K, 20% for $10,001-$60K and 30% for everything above $60K. If you make $80K a year you will pay like this: your first 10K will be taxed at 10%, from 10K to 60K you will pay 20%, your final 20K will be taxed at 30%. Your entire income was not taxed at 30%. 30% is your marginal rate, what you will be taxed on any additional dollars earned from where you currently stand.


Just as a note, I do not retract any of my statements regarding the health care bill. My information was correct in that respect. And I used an overly simplified example to illustrate a complex principle, like we do in school. You can do the math and even if there were 10 healthy people for every 1 very unhealthy person (even when projected into a pool of 300 million) with price discrimination based on health made illegal, you will ultimately be paying for their bills. Lots of it. If you like that sort of thing then socialized medicine, where we are headed, is for you. I don't like that sort of thing. I like the idea of everyone being accountable for themselves and being self reliant. (I do believe in helping others and receiving help from others, but I do not believe in government acting as the middle man and dictating how it is done.) It's easy to see how humans act and what motivates them to do better, and if one is never held to the consequences of their actions and the outcome is always the same no matter what they do (kind of like Satan's plan) it makes for some bad news. And just as a note, the history of socialism is that while it has always reduced the gap between rich and poor it has also always dramatically reduced the income/quality of life of the average citizen. So yes, no rich and no uber poor, just the extremely powerful and uber rich elite that make the laws and lots and lots of poor.

Our First Place

This is the official announcement that Tyler and I are under contract for our first place! It's a townhome/condo close to downtown and everything is coming together so well. The phrase "there will not be room enough to receive it" comes to mind!

Tax Training

I just finished a tax training course on the new Health Care Bill. And because I care I am sacrificing my nap to share a couple things I learned with you all! This isn't just something I heard, these are things I received tax accountant training on today.

• The Bush tax cuts that set income tax levels at the 10%, 15%, 25%, 28%, 33% and 35% are set to expire and will be replaced next year by 15%, 28%, 31%, 36%, and 39.6% brackets.
• Middle class tax rates are set to go from 15% to 28% next year. That's you families making about $70,040 – $141,419 a year (and single people making $35,020 – $84,872). Those of you in that range with families will attest that while you're comfortable (and just barely made it there!), you're not in the lap of luxury and definitely still have to watch your money. Better budget on your monthly income getting significantly smaller as you will be handing over an extra 13% of your income in taxes next year. Doesn't everyone remember Obama's repeated campaign promise that "the middle class won't see their taxes raise one dime?" Good to know middle class is the hardest hit in this rate increase. Nice.

Now for one (of many) piece of this monster, ridiculous Health Care Bill that should get everyone's, except the most true, delusional socialists or communists at heart, blood boiling. I've already shared item after terrible item contained in this health care bill on my blog, but I honestly didn't know this one. And it is for sure, tax teachers are teaching it in training.

• In 2014 it will be illegal for an insurance company to have any differences in health insurance premium costs based on health, gender, race, or ANYTHING.

To some of you this may sound good. But let's do a math problem together:

Individual A: nonsmoker, healthy eater, exercises, only medical history includes gall bladder removal. (this is me)
Individual A's insurance paid $1000 on claims made this year.

Individual B: smoker of 50 years, drinker, obese, chronic heart problems, liver disease, cancer of mouth, etc. etc.
With the same insurer as Individual A, insurance paid $50,000 on claims made by Individual B this year (this is not unheard of when you consider my insurance paid $7000 on Cameron's healthy birth)

Insurance Company: has 50,000 + 1,000=51,000 in costs to pay for between individuals A and B. (We'll even leave pesky overhead out for easiness sake)
Add a 2% profit of 1,020 (honestly guys, not bad, who is in business at all if they can't turn a profit?)
Total cost for insurer to recover 51,000+1,020=52,020
*Econ 101 bonus* Insurer passes costs on to customers A and B through premium costs
$52,020/2= $26,010 (because remember it is illegial to price discriminate for any reason, even health, therefore premiums must be perfectly equal between A and B)

Congratulations Individual A for keeping yourself healthy and only needing $1000 of medical work last year! Your reward? $26,010 in premiums this year! Wait? Ridiculous? Well, you can't not have health insurance because it's the law, you know!!

Who wouldn't turn to government options at this point? This is exactly why this bill has signed the death order of private health insurance companies and millions of people's jobs associated with them--and it was meant to. Sure, everyone hates insurance companies--I myself was rejected from coverage twice, paid 5 months of COBRA prices, and have spent countless hours on the phone fighting with them, and I'm only 26 and healthy--but I promise you that dealing with the government will be so much worse, especially when there is no one else you can go to. Think Social Security office efficiency in your doctor's office, and joked-about government worker work ethic and skill for someone with your life in their hands. Make no mistake, the powers that be in Washington would like nothing better than to take all your money and make all your decisions for you.

As someone who has now been initially trained on the bill, as I jotted down notes on provision after provision I found myself thoroughly confused as to who this bill is supposed to benefit! There are provisions that cause both the healthy and unhealthy to lose, the old and young, the rich and middle class and poor, the large and small businesses. (And especially the married. This bill introduces the largest of what is known as the "marriage penalty" in US tax history.) In short, everyone loses with this bill. Who wins? Politicians and bureaucrats who live to sieze power and money.

Just a friendly reminder that elections are upon us! Let's use our voice wisely (and loudly) why we still have one!

It's a Girl!!

And I had my first little girl clothing shopping experience the other night. I think I'm really going to like this!

Everyday, good people

To all my friends and family who read my blog and find themselves starting to believe the lie that Tea Partiers are violent "domestic terrorists" or find themselves shying away from joining the gatherings because of the stigma now attached, please don't fall prey to the lie. I already find myself under scrutiny by others because the media is starting to get their way with the branding and stereotype that is in no way true. I promise you that these protesters are peaceful people exercising their constitutional rights, people who look like your grandparents, parents and good friends. They are everyday people who want the freedom to live their lives without excessive government interference. Take a really good look at these pictures taken at tea parties all over the country and see if you see anyone that matches the media's favorite description.

July 4 Tea Party in Alabama

Freedom Rally in Utah

First Nationwide Tax Day Tea Party in Utah, 2009...

and in Washington DC
Tax Day Tea Party in Illinois, 2010

9.12 Rally in Washington DC

They all look like pretty violent gatherings don't they? No, they are extremely sedate, take it from me. Most of the people were protesting for the first time in their lives, even (and maybe especially) those who are 60+ years old. I challenge anyone who still thinks Tea Partiers are extreme or violent to find a video anywhere of a Tea Partier actually being violent. With cameras virtually everywhere now, if it happens it would be easy to find. But I bet one wouldn't find it.

Have courage to stand up for values and morals even when you may be branded as evil. Remember in the last days evil will be called good and good will be called evil. Remember that in the scriptures good men and prophets were almost always branded "wicked" or "contentious" as the evil men flattered away the hearts of many through their "expert words." In fact, keep an eye out in the near future as I have almost completed the entire Book of Mormon specifically noting each example of such and will share with you all.

PART II

You will never hear the media report on who the real thugs are. Courtesy of my sister's blog, here is a great example of the real violent "domestic terrorist" groups that will never be called such.

Left-wing Union, SEIU,

protest Bank of America Executive

AT HIS HOME--

teenage son alone inside, locked himself in bathroom in fear

*SEIU's recently retired's ex-president, Andy Stern, is friends with Pres. Obama- the most frequent visitor to the White House
*SEIU spent $70 million getting Democrats elected in 2008

*500 people were bussed in to protest at a private residence- an unlawful act
*Police decided not to arrest any protestors for tresspassing for fear of inciting mob violence
*Read more here
So, America, may I please ask you which group of people are acting like terrorists?*

*My brother-in-law (*my husband Tyler*) just left this comment: Interesting side note- SEIU is going crazy with my company Sodexo. They are making all kinds of personal threats against Sodexo employees and the company. Our president sent a mass email informing us all about the tactics of SEIU and how caustic they have been and continue to be.

And spend a minute looking at this video:



Thank you all for enduring my constant preaching, I just feel really strongly about what is happening to our country these days and extremely duty bound to try and help set things right. Reading Helaman and 3 Nephi was never so scary.

Check back in a few days for a happier post about my little sister Amy's high school graduation!