Memo to Senators Feingold and Kohl

Please think carefully before voting for energy tax increases (CAP & TRADE) and any single payer healthcare.

There is no question that our health system is broke and there are more and more people without health care with these massive job losses.

A government run, Taxpayer paid system is not the answer. Even when the economy was going great Medicare was on the road to running out of money. With massive job losses, there is less payroll to pay govt funded paid by payroll tax projects.

It is not the rich that is taxed, it is the working class.

Behind all the rhetoric, the next dollar after a single person who earns $42,000 is taxed at 53%

fed 25%
SE 15%
WI 6.5
Milw
Sales 6.6
Total 53% Marginal tax rate that your next earned dollar is taxed.

If you travel it is an additional 5-10%. If you charge a trip for your family for $5,000, and and your next working dollars are taxed at a total of 60%, you have to earn $12,500 to pay it off. Ever wonder why you always feel behind.

Everything we buy and consume now has additional taxes and fees. Our property tax bills have additional fees that we cannot deduct. Our telephone, cell phone and utility bill have many additional taxes and fees. Wisconsin gasoline already contains over 50 cents in taxes.

I am a tax accountant. I have a retired client whose adjusted gross income is $24,000. He reached 70-1/2 and is required to take required minimum distributions. If he takes $1000 from his IRA, it causes more social security to be taxed. That $1000 is taxed at a federal/state rate of 22%. There is too much denial when we look at who is taxed. Can you explain this to these retired taxpayers.

A goverment run, taxpayer paid health care system needs extensive discussion and input, don’t do it behind the scenes. Only 50% of the adult population pays income taxes, these are the people affected by any tax increase, not the rich, not the 50% that do not pay taxes.


I encourage you to get out your last years tax return, add up your total federal, state, social security and property taxes paid.


http://www.larrythetaxguy.com/
Germantown, wi