Woe is Me? How will I ever survive the Obama Tax Hike?

I read a recent article in our local Sunday newspaper about some families that were just over the $250,000 threshold that the President used as his line, over which, to raise taxes. 'It just isn't fair', was the primary complaint amongst each of the families. 'I don't FEEL rich, why should I, or why should WE have to pay more?'

I guess if you don't FEEL rich, why should you have to pay anything at all, using that logic?

One woman, married with a couple of children, even went as far as to break down their monthly cash flows. '$250,000 isn't even that much money', this person was saying. 'After taxes, it's only, like, $12,000 a month. After retirement contributions, private schools, utilities, college savings, $1,200 a month tithing to our local church, and a $4,000 monthly home loan payment, it doesn't leave us much to spend. We aren't broke, but we aren't swimming in cash either...'

I am wondering if anyone reading this can spot the flaw in this logic (after getting over their righteous indignation!). Perhaps I can help this woman out a little here:

First of all, what the heck is a family of 4 doing with a $4,000/month mortgage payment? Even with taxes, that's a home debt burden over $500,000! I suppose earning $250,000 a year means that fiscal responsibility doesn't apply any more. Even if someone wants to buy such an extravagant home on this salary, I am not too interested in hearing the "woe is me" song that he or she is singing of over taxation. There are things called budgets. Most people have to live within them. The laws of economics still apply to us all, as we have been made painfully aware in recent times.

Second, being able to fund retirement, private school, college savings, full tithing and STILL having money left over each month is better than about 95% of the people out there.

Third, the person making exactly $250k isn't really paying an appreciable amount more in taxes. Even the person making, say, $300k is paying a whopping $1,500 more in taxes (the marginal rate increase to 36% from 33% on $50k) this year from last. That breaks down to a whopping $63/paycheck, which is a real burden on that $6,000 bi-monthly paycheck. Pardon me if NO ONE is shedding a tear for you.

I saw the phony baloney "outrage" that was conjured up about being over taxed in our society, in the form of the recent "Tea Parties" last Wednesday. Unfortunately, I didn't see too many people making over $250k at these rallies. Ironically, the other thing I saw on April 15th was my recent paycheck, which went UP by about $50! I got a tax cut (remember THAT!? People forget that 40% of that $787 Billion Stimulus Package was TAX CUTS). Surprisingly, I didn't see a lot of mention of that fact on the news reports.

Fighting government wasteful spending is a noble cause, and I wouldn't object to the goal of spending less and spending smarter. I believe John McCain has made a living on just this principle. But this notion that this "outrageous" tax code suddenly sprung to life on January 20th, 2009 is just silly. That government debt and deficit spending is happening reminds me of Captain Renault being "shocked that gambling is taking place" at Rick's Cafe in the movie "Casablanca".

Similarly, this notion that we should feel sorry for those making $250,000/month, because their tax increase may go up at the same rate as my children's monthly co-pay amounts, doesn't really sell with me. It's time for some newer arguments about overall tax policy. We've already heard the original far too many times.