Tax Guru – Ker$tetter Letter

Helping real people win the tax game.

Archive for January 24th, 2003

Posted by taxguru on January 24, 2003

Poor On Purpose

It is true that there has long been a specialty in the financial arena called impoverishment planning. I must admit that I’ve done my share in helping clients arrange things so that they could qualify for certain government programs, such as Medicaid. I can’t agree with the sentiment of this writer that this kind of thing is an evil scam to rip off the taxpayers.

All most people want is to be treated no worse than illegal immigrants. Is it fair that millions of people from other countries are allowed to sneak into the United States and then receive absolutely free medical care and education for their entire families for the rest of their lives, while people who have lived, worked and paid taxes in this country for 60 or 70 years are not eligible for the same assistance because they happen to own a home or a car?

KMK

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Posted by taxguru on January 24, 2003

Marriage Penalty

Don’t shoot the messenger. Whenever I point out some of the penalties built into our tax system for married couples, I receive a lot of hate mail claiming that I am encouraging people to get divorced just to save on their taxes. That’s not true. I merely point out the facts and let each couple decide for themselves how much extra they are willing to pay for the privilege of being married.

Here are some more of the tax breaks for unmarried couples. If you agree with me that it is insane to penalize people for being married, let your elected rulers know and don’t accept that “we can’t afford to fix it” crap from them as an excuse. If they can afford to give themselves raises and take all of their friends on expensive junkets around the world, they can surely afford to let married people pay the same taxes as single folks.

There is a misconception that the current Bush tax proposals will eliminate the marriage penalty. Not even close. It will allow a small deduction for married couples who both have employment income, similar to the miniscule one we had for a few years. It does very little to balance things out. The only true elimination of the marriage penalty would be to allow people to have their taxes computed in the same way as single people.

KMK

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