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Posted on 05/21/2002 7:13:24 AM PDT by let freedom sing
Edited on 04/12/2004 5:36:41 PM PDT by Jim Robinson. [history]
I'm retired and had a pretty good gig as a part time consultant. The problem is exactly what you posted here: deal with state and federal taxes that exceeded 55%.
As an independent contractor, I started out putting into an escrow account 50% of each dollar I earned consulting for both sides of the FiCa tax, Fed and state Income taxes to pay my quarterly taxes. The last year I worked I kicked it up to 60%. I was clearing 40 cents on the dollar after taxes.
I had taken an early retirement program that lost 50% of its monthly income when I became 62 and eligible for Social Security. So when I turned 62, I went on Social Security.
After going on Social Security, a year and a half ago , my accountant explained to me how the penalty for working still applied to Social Security recipients under age 65. If I worked at the same level, I had before I turned 62, I would lose basically all of my social security benefits besides going into higher tax brackets for my wife and myself. Basically I would be working for nothing. My CPA called it very expensive money that only dummies without a life did.
After that session with my CPA, I had one more road trip with the people I had contracted with. I flew to LAX and got into the big bomb scare. My projector, slides and suit were in the plane's belly, and no one was able to get to them for hours.
I had my cell phone and got hold of Avis which sent a car within about a half mile of me. I walked and got the car, called the hotel where I was to sponsor a dinner focus group program and told them to start the dinner and that I would be late.
I was one hour late, in my short sleeve shirt and jeans with a pretty good beard growing since early that morning. I winged it fairly well. My luggage showed up at 3 am with a prescription drug for my high blood pressure and a respiratory drug that as needed at that time. I decided at 3:10 am that was my last trip and consulting jig. I did not reup for any contracts after that. The $500 gross pay for that day amounted to $200 after taxes, and it just wasn't worth it any more.
So I know where you are coming from.
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Sort of like Ridge's Color Coded Alert system for Terrorists!
So, am I to assume they're hard at work eliminating the nonessential functions? Shouldn't a public servant like the governor protect taxpayer interests by eliminating every damn thing that government needn't do?
Sometimes I crack myself up.
They intended to freeze the nonessential-- duh! Notice the cut-backs in mental health-- the same year a known psychotic wack-o tried to blow up the state capitol with his company truck.
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