Posts tagged as:

taxes

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In 1999, my husband and I decided that our house was too big and empty for the two of us. So we did what many couples our age did: we got a dog. Our lab mix, Lyle, has been a part of our family ever since. He goes with us to Maine on vacation every year. He’s been camping with us across the Commonwealth of Pennsylvania and has splashed through the beaches of North Carolina. He has snatched the occasional pie on Thanksgiving (maintaining his “who me?” expression all the while covered in meringue). And as the first official “grandpuppy”, he even gets gifts from my mom at Christmas.

When we first got him, we dubbed him the “Six Million Dollar” dog. He had not been treated well as a puppy and when he found us at our local SPCA, he had serious respiratory and intestinal infections. He sneezed the entire way home and later, vomited continuously. As a result, we got to know our vet pretty well early on. Since then, he’s survived Lyme disease (twice!) and an attack from a dog down the street which resulted in several stitches. I would venture to say that we’ve paid as much for his care as we have for our three kids.

Since I filed my taxes today (hey, no judgments), I was reminded that deductions and credits allowed for children can be significant. Not so for pets. Except in the case of service animals, you’re not allowed any deductions for the care of pets. That may, however, be changing.

Rep. Thaddeus McCotter (R-MI) has introduced a bill, Humanity and Pets Partnered Through the Years (”HAPPY Act”) which would allow taxpayers to deduct up to $3,500 a year in pet care expenses. That may elicit a chuckle or two from his colleagues on the Hill but before they dismiss the idea, they should consider these statistics from the American Veterinary Medical Association:

  • In 2006, nearly half of pet owners, or 49.7%, considered their pets to be family members.

  • There are more than 72 million pet dogs in the U.S. and nearly 82 million pet cats. (taxgirl note: that’s roughly equivalent to the number of taxpayers that same year)
  • The average veterinary expenditure per household for all pets was $366 in 2006.

The bill would allow a deduction for “amounts paid in connection with providing care (including veterinary care) for a qualified pet expense other than any expense in connection with the acquisition of the qualified pet.” Qualified pets would include legally owned, domesticated, live animals. So dogs yes, illegal ferrets and such, no. You can read the entire text of the bill here.

Clearly, animal rights groups think this is a good idea. “We think this is as much a health care bill as any,” said Nancy Perry, vice president of government affairs at the Humane Society of the United States. “It’s a human health issue to ensure that pets are provided with better care because of the role they play in our families.”

On the one hand, I’m a little skeptical. We are, after all, in a tough economy with a huge deficit. More tax cuts?

But I do *get* it. For many taxpayers, like me, pets are family. And the cost of providing quality care for a pet can be mind-boggling (our trip to Penn for Lyle’s emergency stitches ran over $1000). Maybe – and it’s a real maybe – the availability of deductions might encourage some pet owners to provide better care for their pets – if you’ve ever seen Animal Planet’s Animal Cops, you know what I’m talking about.

So, what do you think: should the care of pets be considered deductible?

(Hat Tip: @huma_rashid and @beskeie)

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I just got word that “An Inconvenient Tax” has been finished and the new trailer is out:

An Inconvenient Tax – Official Trailer from Life Is My Movie Entertainment on Vimeo.

If that name rings a bell, it’s because I was interviewed for the movie a bit back. I’m excited to see the final product… I’ll keep you posted!

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Pittsburgh_Steelers.jpgWhen it comes to football, Pennsylvanians are pretty hard core. From the Steelers to the Eagles, NFL football makes headline after headline in the fall. Also in the state, we have a little college football team called Penn State that seems to do pretty well from time to time. I think it’s fair to say that the state is passionate about football.

Rep. Rep. Daryl Metcalfe (R-Cranberry) wants to see a little of that heart when it comes to talking taxes. On Tuesday, June 9, representatives from the National Taxpayers Union, Americans for Tax Reform, Citizens Against Higher Taxes and the National Federation of Independent Business will speak at a rally in the rotunda at the Capitol Building at 10 a.m. Metcalfe is hopeful that taxpayers turn out, too. He noted that record numbers of citizens showed up to watch Pittsburgh take home another Super Bowl tropy, and encouraged a similar level of participation: “Ten percent of the people who showed up to see the Steelers win the Super Bowl — if they would descend on the Capitol, it would be historic for this building.”

Metcalfe has a good point. Whether you agree with Governor Rendell (who claims that an income tax increase of .3% is needed to close the state’s $3.2 billion deficit) or Senate Republicans (who argue that a tax increase isn’t necessary and was Rendell’s plan all along), participation in the process is important. It’s easy to yell and scream about taxes – but how much do you really care about it? If you’ll yell and scream about football, why not a tax increase?

Folks will stand in the freezing cold to watch a mediocre team lose as much as they will to watch a good team win. They’ll drive hours to see games and players and spend tons of money on jerseys, pennants and posters. They’ll organize entire day-long tailgating events and invite friends and family over for parties and dinners – all to watch the “big game” and in football parlance, that’s more or less every game.

But what about taxes?

Hey, I’m not claiming that talking about taxes is necessarily as fun as attending a Super Bowl party but it’s arguably more important to your life (assuming, of course, that you’re not Ben Roethlisberger). Why not show a little – and I’m talking just a little – excitement when it comes to tax policy? Write a letter to your local representative (or to the editor of your local newspaper). Attend a rally. Read the budget. Get educated. Don’t think it won’t make a difference. It will. Lots of what goes on “behind the scenes” happens because nobody cared enough to say differently.

Show that you care about where your tax dollars go.

Statistically, people have a negative reaction when it comes to increasing the income tax rate. But apparently it’s more along the lines of a shrug than a full on “Booo!” And heck, I live in Philadelphia. We’ll boo just about anything. Why not taxes?

Do you think the Steelers and Eagles would show up every game and play if the stadiums were empty? Let me clue you in: they wouldn’t. Cheering matters.

So here’s my advice – and it’s not just for Pennsylvania. Let your legislators know how you feel. If they’re doing the right thing, why not shake a pom-pom in their direction? And if they’re not doing the right thing, give them an “encouraging cheer” in the right direction or flat out “boo” them loudly. Show that you care as much about taxes as you do about football. And since I realize that’s just not possible for some of you (you know who I’m talking about, PSU people), at least make the effort.

Image courtesy of Creative Commons, taken by Steel City Hobbies.

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Without revenues, a government can have no power.
Alexander Hamilton, First Secretary of the US Treasury

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You will find no federal holiday dedicated to our love of taxes. There will be no parades in honor of taxes. No ceremonies, concerts or TV specials. This is because many in the US think of taxes as a burden, this heavy weight on our collective shoulders that “isn’t fair.” Some folks even dare to say that they have never benefitted from our system of taxation. Those folks are wrong. In fact, it is completely fair to say that our country is the country that it is today because of taxation. Our history as a country is deeply affected by our system of taxation: the wars that we fought and won have all been financed by a system of taxation. All that has changed, really, from war to war is the kinds and levels of taxation.

In the late 18th century, in order to pay off debts from the Revolutionary War, Congress imposed a number of taxes on such luxury items as alcohol, tobacco, sugar and some real property. A few short years later, Congress imposed additional excise taxes to pay for the War of 1812. Those excise taxes were later repealed.

In the relative peace that followed, the US government didn’t collect revenue directly from its citizens. Instead, the government depended heavily upon the sale of public land and customs duties. That all changed in 1861, when the financial pressures of the Civil War forced Congress restored excise taxes and instituted the tax many Americans grew to hate: the personal income tax. The income tax was levied at 3% on all incomes higher than $800 a year.

Nearly half a century later, the financial burdens associated with World War I made income taxes a centerpiece of our modern economy. By the mid-20th century, income taxes were firmly linked to maintaining our position as one of the most influential countries in the world, linked closely to the continuous presence of a powerful military.

This is not to say that all of our military decisions have been good ones or that our tax system is perfect. But before you decry taxes as completely wasteful and useless, take a moment to think about what it has bought us: freedom and democracy.

I say this on a day when we honor those who have fallen protecting our country, those that have offered up sacrifices far greater than a few dollars out of your pocket. The men and women who have served our country have spent endless days away from their families and have been thrust into dangerous and unfamiliar situations. Some of them never made it home. And many of those that did, came back with injuries and memories that are far more painful than we can imagine.

And maybe you don’t like paying taxes. But there are those who have gone to their deaths to defend your right to say that out loud, for me to scribble away on my blog, for you to attend tax protests and cast a vote about how you feel.

Think about that. And on this day of remembrance, take a moment to thank our soldiers for their contributions to our country. They’ve given us so much.

Finally, indulge me for a moment. I wanted to a give a mention to my brother, Rob; my brother, Timothy; my father-in-law; my grandfather; my great-grandfather; my uncles; my cousins; and all of those that I know who have ever donned a uniform for our country. On this day – and every day – I thank you.

Image courtesy of the US Army through Wikimedia

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Fix the Tax Code Friday: Bailing Out the Government

15 May 2009

It’s Fix the Tax Code Friday!
Remember that study that I cited from the Tax Foundation earlier in the week? That same report offered another statistic. In 2007, the cost of balancing the budget would have cost each taxpayer an additional $1,789 in taxes. This year, due to “the bailouts and the Troubled [...]

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So I’m Not Jessica Alba…

20 March 2009

But I’m still mentioned on esquire.com this morning. You can check out the link to my interview about not paying taxes here.

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Joe the Plumber Owes Taxes (Psst, and Not a Plumber)

17 October 2008

It turns out that “Joe the Plumber” has more tax issues than were spotlighted during the final presidential debate. He doesn’t just not like taxes, he apparently doesn’t like to pay them. He owes the State of Ohio nearly $1200 in back taxes; Ohio has filed a lien against him to recover amounts [...]

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Who Wants to Raise Taxes? Bueller…? Bueller….?

12 August 2008

Ben Stein may be known best by my generation knows as the best as the economics teacher in the movie Ferris Bueller’s Day Off (”Bueller…. Bueller….?). But he is also an attorney, former presidential speechwriter (for Nixon and Ford) and regular newspaper columnist for the New York Times.
Stein’s political beliefs generally tilt towards the [...]

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Ask the taxgirl: Tax dollars for illegal immigrant health care?

28 April 2008

Taxpayer asks:
Dear Taxgirl,
In the last couple months, I’ve received a spammy e-mail asking me to sign an “electronic petition” against a tax increase so the government can provide health care to illegal aliens. I deleted this whenever I got it, because it just sounds like some urban legend to me. I mean who [...]

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Top 10 Ways to Make Paying Taxes More Fun

25 April 2008

If you’re like me, every year at about this time, you make a vow that the next tax year will be different.
If you’re like me, you’re also six feet six inches tall, an incorrigible wise-ass and think you’re way cooler than you actually are.
For the purposes of this discussion, though, we should probably keep the [...]

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