The only other observation I would make, is that since you are foreign nationals (from the UK), there may be a “totalization agreement” between the US and UK with regards to the national retirement system under which you are covered. This may affect the type and amount of social security tax (self-employment tax) owed; so, I would investigate that issue further.

Disclaimer – this does not constitute professional or legal advice; you should consult your tax professional.

That said, I have found it a great annoyance to have heard repeatedly by politicians of every stripe and pundits, alike, about how the “bailout” or “economic rescue” is at the expense of the taxpayers.

While that may well ultimately end up being true, the manner in which such sentiments are spoken is usually meant to leave the impression that the “fat cats” on Wall Street and other assorted corporate titans are being showered with money squeezed from the “Joe the Plumber” types. In reality (as I don’t believe it’s changed that much since 2002 or whenever the latest Treasury data was collected), over 50% of federal income tax revenue comes from Bill Gates and Warren Buffet.

Since I’m on the subject of taxes and on a rant, another of my pet peeves is the way Federal Insurance Contributions Act (Old Age Survivors and Disability Income) and Medicare taxes have been totally ignored. Most Americans seem to be laboring under the false impression that there is some kind of fund collecting their retirements (akin to a defined benefit or defined contribution pension plan) that they are entitled to receive with earned investment income. They fail to realize that it is a pay-as-you-go system from which every recipient–to this day–has received far more (many, many times) what he or she paid into it … and that Congress has never had the stomach (much less the political will) to do anything about.

Social Security taxes make up a significant portion of federal revenues, approximately equalling or exceeding the federal income tax revenues. What is AARP’s position on the subject? Of course, the elderly are entitled to it (by law, no doubt correct) … do they feel a responsibility to future generations? It seems to be in vogue to express concern about saddling future generations with the debt created by the “economic rescue” plan, but what about the economic rescue of a couple of generations (including baby boomers) of seniors whose only retirement plan was to expect Social Security to be there for them?

Off my soap box for now … if you have sources for federal income tax revenues, I’d be interested in seeing them (or links).