Saturday, April 14, 2007

Tax time again

It’s tax time, and you probably hate the process as much as me. I spent around 20 hours using TurboTax, and I still have no idea if I got it right. Even though our income is nearly the same in 2005 and 2006, I owed the feds more than $1K in 2005, and this year they owe me over $1K! It’s a shame that someone with (almost) a Ph.D. can’t figure them out.

Some other tax tidbits that drive home just how ludicrous our tax system really is:
  • If you were to use some tax-savings strategies, you could be in danger of patent infringement.

  • According to a new study, loop-holes in California's tax code leave the poorest fifth of California households (average income of $11,100) paying 11.7% of their income on state and local taxes and the highest earning 1% of earners paying 7.1%.

  • Even though California created a system to simplify how many citizens paid their income taxes in 2005, the system has been stifled by companies that could lose money if consumers quit using their parasitic tax preparation services.

  • And you thought you had a pretty good personal relationship with your tax preparer? Well, he’d like you to know that he doesn’t want to hear about your personal matters, including what your kids are up to.

"Taxation with representation ain't so hot either."
-Gerald Barzan