Wealth, Redistributed

For fifteen years, from 1982 until 1997, I was a single mother on active duty. (I’m still single and still a mother, but I no longer have financial responsibility for the tykes, the youngest of whom is 29.) Those were really tough years financially. I didn’t make a lot of money, and if I hadn’t had a house with a low mortgage payment and people who looked out for me, I honestly don’t know how I would have made it through that period of my life. Sometimes friends would donate their old furniture to me. One sold me a car; another, later, helped me buy a different used car. A few times, friends came over and did minor home repairs. One once found me a deal on a new central air compressor.

I wasn’t lazy. I wasn’t on welfare. I had three kids, a full time job, and all of those 15 years I was working on several college degrees, ending with a master’s the year after my youngest child turned 18. But I had very little money.

In short, times were tough, financially and otherwise.

One “person” who looked out for me was my Uncle Sam. Because we have a graduated income tax system under which people pay according to their means, I received tax breaks for my “head of household” status and for my three minor dependents. I don’t have easy access to my old tax records, but I probably paid well less than $1500 in federal income taxes in 1997, the last year I qualified as head of household and had a dependent other than myself. For argument’s sake, let’s say it was $1500.

In 1998, I became, for tax purposes, a “single” person. I no longer maintained a household for dependent children and had only myself as an exemption. My taxes might have skyrocketed, but for the next three years, ironically, I made even less money than before, in part because my previous job had ended with my boss’ retirement and I was teaching part time. For a while there, I also had a very crummy low-wage mortgage company job (with one of those companies that recently was bought out just before it collapsed). My income was even lower, but due to my new status, my taxes increased somewhat.

Six years ago, I obtained a full-time teaching job, and my income increased considerably, although I am still hardly a top-wage earner. Last year I made about $46,000, including summer work. Next year it’ll be a lot less because I will have little or no summer employment.

In 2007, I paid $5300 in federal income taxes. This means that over a ten year period, I have had an increase in taxes of more than 300%.

I have never once complained about this, and I’m not writing this post to complain now.* Between 1982 and 1997, I was financially insecure, and sometimes financially paralyzed. Now times are better, and I am comfortable enough not to have to worry about how I am going to pay for the groceries or if I’ll be able to make it to the next paycheck. (Other things are more problematic, but I can cover all the basics.)

For this reason – because I am financially stable and can afford all the basics – I think it’s just that I have received that 300% increase. Sure, I’d like to pay fewer taxes, but I haven’t forgotten that when I needed the “wealth redistributed” to me, it was. When I couldn’t afford to pay $5300 in taxes, I wasn’t asked to. And now that I can afford to pay it, I am asked.

On a small scale, this is Barack Obama’s tax plan. Some people can better afford to share the cost of running our country. And those complaining should consider that Obama isn’t asking anyone, not even those making over $250,000 per year, for a 300% increase.

So to those complaining, get over it.




*I have sometimes complained about how the money was spent, but never that I was required to pay it.

In Which Obama Listens to Me

My favorite moment in last night's debate went something like this.

McCain was complaining about Obama's plan to "just" give tax cuts to those making under $250,000. He couldn't see why EVERYONE couldn't get a tax cut.

As the floor went to Obama, I said aloud, "Bring up Warren Buffett," who has famously pooh-poohed the idea of giving tax breaks and cuts to the rich. From 2007:

Buffett cited himself, the third-richest person in the world, as an example. Last year, Buffett said, he was taxed at 17.7 percent on his taxable income of more than $46 million. His receptionist was taxed at about 30 percent.

Buffett said that was despite the fact that he was not trying to avoid paying higher taxes. "I don't have a tax shelter," he said. And he challenged Congress and his audience to see what the people who "clean our offices" are taxed, to loud applause.

Anyway, you know what happened next. Obama brought up Buffett.

Before that, I had no idea the debates were interactive.

Just Like Crack

...looking stuff up in the public records.

In comments just below, I discussed how Tall Son and I were checking out local criminal records last night.

Then, because one of my neighbors told me yesterday that he was probably going to sell, I decided to look at his property records.

Which led me to looking at the records of all my neighbors on this 7-house cul-de-sac. Upon reflection, I don't think anything I learned surprised me.

You know about me and Neighbor Guy. On the corner next to Neighbor Guy, the couple, who have been there since 1997, have only their original mortgage and a second, signed the same day, to the county, for $5000 with 0% interest. Must have been one of those incentive programs we hear about now and again.

On the other corner, Lawnmower Man and his wife have refinanced several times, but always modest amounts. I think they did it the first time to finance their addition, but after that, it's always been for about $50,000. I think they've just been shopping interest rates. Who knows?

Then, oh dear, the neighbor who says he'd like to move. He and his wife also have refinanced a number of times, each time pulling out more equity so that their most recent mortgage is nearly $120,000. In this modest neighborhood and knowing the condition of their house, I suspect that's over its value. And I suspect they used a subprime lender.

Next to them are the people directly across from me, and their story is also quite similar. They've only been with us for five years and have refi'd three times. Again, I suspect that if they're not over value, they're kissing it with that last mortgage. This time I'm almost certain their loan is subprime: it's with Countrywide.

Finally, my neighbors to the left quietly paid off their only mortgage two years ago, right on time at 30 years old. And that's it for them.

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While I was busy on the court records, I found a link to the property appraiser's office. Like the court's, the appraiser's website is far more fun and useful than it used to be. I can literally check out the whole neighborhood by clicking on each lot on a plat map. The map is color-coded: if the house sold in 08, 07, or 06, the lot has a corresponding color. If the last sale was older, it's white. Very few houses have turned over in my neighborhood in the past three years. I suspect that's because the neighborhood is modest, but also reasonably well-kept. In the old market, who could afford to move out? And what would have been the incentive?

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In the last election cycle, "we" the voters approved a real-estate tax "relief" measure. The good news is that according to the appraiser's office, my taxable value is now only $34,000.00. Except, because the county is having desperate trouble making ends meet, that's really also the bad news. But what do I know? I'm a tax-and-spend liberal.