California Taxes-Have you looked at your W2???? (sales, health insurance)

[Dean Trails]

I just received my W2 and noticed that when you add up the Federal withholding, State withholding, Medicare tax and State Disability the amount adds up to approximately 25% of the wages. Then add up the amounts you pay for state sales tax, property tax, local taxes, auto license fees and maybe boat fees we are talking some real cash outlay for govenment.

Do you feel you get your money's worth????

[Lovehound]

Wow, you're getting a pretty good deal. I've done just what you said in past years, add up federal and state taxes, Social Security, Medicare, then add in sales tax, property tax, gasoline tax, etc., etc., and I've generally come to the conclusion that I've paid over half--over 50 percent!!!--in taxes.

My opinion is that the federal, state and local government could be run for only half what we pay in taxes if only these governments were run efficiently and without waste.

However, I expect that probably California is not that much worse than other states, and maybe even better than a few of them.

Heck, we're lucky they don't take our entire paychecks.

[MisterDuke]

Yes, being an American comes at a substantial cost. If you think you are overpaying, what do you think would be a fair price?

[Lovehound]

I would be willing to give 25% of everything I earn to government if they would use it carefully and wisely, without significant waste.

[POhdNcrzy]

Trails, Try increasing your exemptions on your W-4 to about 7 or 8 or more. It really helps.

[esmith143]

Social security is 'forced savings', that money will be paid back to you when you're retired ... Medicare will pay for your health coverage when you're 70, and health coverage is expensive ... Your property tax and half of your state tax go to provide free public schools and discounted public universities. If you don't have any kids, you may feel that you're not getting your money's worth. If you had 2 or 3 (which is the responsible thing to do), you'd appreciate that. Between 10% and 20% of your state tax pays for the prison system, to keep criminals off the streets.

It's easy to criticize the government for spending too much money, it's much harder to identify areas where one could make substantial cuts without jeopardizing quality of life in the country.

Did you know that Medicare has the lowest administrative overhead (something like 2%) of all health insurance companies in the country?

[EscapeCalifornia]

Originally Posted by esmith143

Social security is 'forced savings', that money will be paid back to you when you're retired ...

I hope you're not under 40 and still believing that.

[POhdNcrzy]

Esmith143, I have a friend who invests money on behalf of people who think as you do. Please give him a call, his name is Bernard Madoff and he lives in NYC....

[Lovehound]

Originally Posted by POhdNcrzy

Trails, Try increasing your exemptions on your W-4 to about 7 or 8 or more. It really helps.

Actually your comment points out a widespread misconception, that what you put on your W-4 makes any difference. True, it will cause your employer to withhold more money or less money, but by the time April 15th rolls around if you picked too many exemptions you will owe a large tax payment, or if you picked too few you will get a large refund, which is tantamount to loaning the money to the government for zero interest rate. But either way the amount of taxes you have to pay is unchanged.

I've always tried to adjust my exemptions and try to hit the target that when I file my taxes I owe nothing and get nothing back. That would mean that I was paying exactly the right amount out of each paycheck.

Some people intentionally set their withholding too high just so that they can get a big refund. Evidently these are people with no self control who cannot force themselves into putting a bit of each paycheck into a savings account (which BTW would earn interest). I think it's crazy to loan money to the government at zero interest rate.


In any case, my comments above referred to my total tax bill, that I would be willing to give 25% of my income to the government, but only if they used it carefully and wisely. Sadly that is not the case.

[Lovehound]

Originally Posted by esmith143

... Medicare will pay for your health coverage when you're 70, and health coverage is expensive ...

Actually it's 65 years of age, and it pays only part of your coverage. You still need what they call "Part B" and that is about maybe $300 per month (what my mother says she pays).