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March 21, 2007


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Without a doubt, social security. Why should I pay to support retired people, many who refused to save the last twenty or thirty years, into their retirement? And side from that, I won't see a dime I'm paying into social security in thirty years, unless they do something drastic to save it.


Well, I hate nearly all taxes. But I would suggest the Alternative Minimum tax is among the most hated.

I know it isn't the biggest chunk of change, but what if I could have put my 7.5% plus my employers 7.5% into a mutual fund over the past 15 years? It makes me want to tear my hair out.

I would have to agree with the first post ... paying money into a system from which I will get little (if any) benefit. Probably over time, they will find a way to take (tax) what I have worked hard to save for my retirement to give to those who are consuming now rather than looking to the future ... don't get me started!!

Inheritance tax. 9 times out of 10, the deceased paid taxes on this money during their lifetime. Then the inheritor pays taxes again!?! The gov't reaps the benefit by double taxation.

I have to agree with Ciji. Inheritance taxes will halve the estate that I want to leave to my son, daughter in law and grandkids. And it's a lifetime of frugality that's being destroyed. Just chaps my hide.

Wasn't on your list but I'd have to say the AMT tax has to be the worst nightmare ever created.

I would say sales tax because it's the most regressive - that is, people with lower-incomes will pay a higher percentage of their income on sales tax that richer people. I think we should eliminate sales tax and make some slight increases in the income tax - the average tax bill would stay the same but the burden would be more fairly distributed.

I would have to say Social Security, without a doubt. At my age, I'm more likely to come face-to-face with a space alien than ever collect a dime in Social Security benefits. They steal the money from my family who puts aside money for the future to give to those who should have done the same when they were my age, but probably didn't. Just another government mandated redistribution of wealth.

Income Tax. The Fed should encourage personal savings as the US savings is at a all time low. Personal Savings is important for retirement / health / security. There should be 0 income Tax. Instead, the Federal Goverment should impose a National Sales Tax. A larger sales tax will encourage people to spend less and only on necessary / highly desired items. We should not be tax when we are building personnel wealth. This includes income, savings / stocks etc.

What really peeves me is that we are tax twice on our money anyways. First we are tax when we earn it and in most states we are tax when we spend it.

For anyone who has had to pay it: the AMT.

Wouldn't you love to eliminate all of the taxes on your list above and replace them with a single, comprehensive, fair, and simple tax? The FairTax aims to do that (for Federal taxes, at least).

The income tax because of it's shear complexity. The rest are direct and simple, easy to plan for and take into account. The income tax has been made as uncertain as everything else due to sunset laws and continual changes.

You WILL see at least 2/3s of social security regardless of how old you are. Some 90% of estate and inheritance taxes are on income on which taxes have NEVER been paid. Will the lies never end?

AMT for sure. We're there now without kids. I wonder where we'll be with them.

Social Security and Medicare are pretty much tied for the worst. At least there's a cap on SS.

From regular income taxes, at least I can shrink them effectively with lots of write-offs. But nothing makes Social Security taxes get any smaller, and those of us with our own businesses have to pay twice as much for them.

More to the point, it's a tax that offends morally as well as financially. Nowhere else is government's confusion of the difference between charity and robbery as obvious as in Social Security.

It's a hard one, but I'd say income tax, particularly the AMT. My husband and I live in an expensive state (Massachusetts), with expensive student loans (we went to school here, too)... We pay far more student loan interest than we can deduct each year, and we consistently get hit with the AMT, whether we file jointly or separately (only one of us gets hit then).

I'm not thrilled with Social Security, but at least I can see it help support my mother and grandmother. I'm sure some vestige of it will still be around in 40 years, but I'm better off not counting on it.

The real estate tax! I have no problem paying taxes. I do hate the ATM, but only because it is not adjusting for inflation and is burdening the middle class rather than what it was supposedly intended to do; prevent the upper class from paying a lower percentage (in relation to assets/income) than everyone else.

Here's my list.

* Federal income tax: The bulk of the tax, but a necessary evil in my opinion.
* State income tax: Doesn't apply to me, but the same principle as federal.
* Sales tax: THIS is where I think all our taxes should be. Don't tax income, don't tax earnings, don't tax property. Tax houses, cars, goods (not food) with a flat % high tax to cover everything.
* Inheritance (death) tax: Also disagree with it, since all the income was already taxed.
* Social Security tax: I have no problem paying into the current system even if I cannot draw from it. If it's there, great! If not, I have private retirement investments.
* Medicare tax: Again, necessary. With health care costs these days, how can a senior citizen on a fixed social security income possibly buy insurance, let alone pay cash for growing medical services?
* Real estate tax: Here's the one I hate the most. Out of all the taxes, this is the only one that maddens me. If I bought a farm and raised my own food, made my own products, etc I could effectively avoid all of the other taxes. But I still have to pay property taxes and worse, if I cannot pay within a year a small $2000 tax bill will result in the loss of my house and land. Housing/land that could be worth hundreds of thousands, yet the government can take it because of a tiny tax bill. I think of all the seniors who bought a house, have it paid for, live off a modest income, yet they lose their home because taxes go up. It disgusts me.

All of them! All of these taxes didn't come about until Remocrats and Depublicans came to rule over us. It is time to take control of our country back by voting them out (if that is even possible anymore, they control the election laws)and electing people who think like our founding fathers did.

omg I can't believe someone posted about how sales taxes takes a bigger % of poorer people's incomes!! Wealthy people naturally will pay more sales tax cause they buy more things and more expensive things... (perhaps some conclusions could be drawn about how poor people are poor because they choose to spend money that they shouldn't be spending... but then where I live food is tax free)

I mostly hate that there is a class of people who pay no tax and yet get to vote to get benefits. I'm a big fan of a flat tax or consumption tax (but with consumption tax you'd probably end up with both income and consumption) If everyone hurts the same (ie pays the same % tax) then everyone will feel responsiblity to not overspend.

If you don't pay into the system you shouldn't get to say how the money is spent - that's like having all of my children vote that we go to Disney World every weekend and letting them win because they out number the parents. They don't pay the bills so they don't get a say.

That said I hate Real Estate tax - mostly because people who don't own property get to vote on how local governments spend this money... The Florida House is talking about removing Real Estate tax and replacing with 2.5% sales tax... That would be soooo awesome... at least with a sales tax you can control how much tax you pay... I suppose I'd probably hate the ATM if I made that much $$$ ;)


AMT is pretty ugly for coastal states - will be a lot uglier in future years.

For me it is probably social security. Over 6% of my money going into a "retirement" fund I never expect to see.

Did anyone mention gas taxes?

Living on a tighter budget though social security is my pet peeve. Between that and medicare is about $6k/year I will never see again. probably my highest tax of all too. We are not paying much in sales or income tax today. Real estate taxes don't grow too fast in California - they are restricted because no one could keep up if they were tied to true market values.

Estate tax doesn't really bug me. My personal opinion, as a CPA, is that the wealthy politicians are making a big deal of it to do away with it. It really only affects the insanely wealthy. So you inherit $20 million and a chunk goes to the government. Who cares. For now you can pass on the first $2.5 million or so of your estate tax free. BEfore Bush cuts and the yearly changes, it was $1 million. Should be indexed for inflation if nothing else when it reverts in 2011 back to $1 million. I think it is a good way to tax - a little off the top after you die, isn't affecting anyone's cash flow like other taxes. But that is my political opinion. Estates do not even include things like pensions, IRAs, life insurance, etc. Those are taxed regularly to the beneficiaries, not by the estate (Well life insurance is not taxed at all). I hear too many people with a net worth of $50k complaining about the estate tax. PEople simply don't understand it. The wealthy have the money to plan tax strategies around it. (Plus there is lifetime gifting and charitable contributions, etc.). The non-wealthy will never see it. Overall not a tax I would fret over.

I wouldn't mind paying the taxes I paid if I Felt they were doing good. But I get frustrated the way the government cuts revenues and increases spending with little regard for tomorrow. Most of us in the personal finance community wouldn't dream of running our households this way.

Dear Andrew:

Yes, I "refused" to save. How much do you believe someone with a minimum wage job, student loan debt, and high medical expenses should be saving after the social security tax is extracted from their paychecks?

Just curious.

I think you missed a really big one FMF so I'll list it:


I hate this form of tax, the most regressive and damaging to the people can least afford it: the poor and people living on fixed incomes. It's a shame we can't claim it as a tax credit.


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