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I found a summary of NC tax changes. All the hyperbole that people from other states have attached to the changes leaves me scratching my head. I don't see any of these changes as being Draconian or leveled against "poor people." Our state is trying to address issues of solvency, which is certainly more than the Federal government is even attempting to do.
Programs must be cut and revenue must be raised in order to balance a budget. I should think any responsible citizen would agree with that premise, but as is typical . . . folks try to demonize whatever party is having to make the hard decisions.
Here's a summary, sans the politically motivated (and skewered) rhetoric from biased newspapers . . .
I’m really surprised at some of the things people are saying here and all the assumptions being thrown around. Most people I know that have all their retirement figured out, live some of the most boring and empty lives. I mean, why do people sacrifice so much during the healthy and young parts of their lives for when they are 70 years old or older (if they even live that long).
Personally, I know people that live check to check and will never have anything saved up. They have tried to improve their situation, but life can be rough and most just give in and live day to day and worry about tomorrow when it gets there. You don’t think that bothers them? You don’t think these people know they have nothing saved for their future or that they have no cushion in case of a layoff or other financial emergency?
I myself grew up in a VERY poor family and put myself through college. I had children at a young age and even though my spouse and myself have college degrees, things have not always been easy. I was laid off and my savings wiped out during the recession. Our credit card debt at one time was close to 90k!! Most of which was for renovating a house and taking a chance at starting a business, and yea, we still traveled, went to lots of sporting events, bought new cars.
But you know what? No regrets.
We still lived life, took vacations etc.
Why? Even in our 40’s, we are seeing health issues creep up on us and just don’t feel like doing what we used to do. I am still as active as ever, but I know that in another 10-20 years, that will change. I’m glad we enjoyed life as much as we could while we could. No matter what, I tried to balance saving with enjoying life.
Today we are fully recovered, have no credit card debt, own a home that has plenty of equity etc, have some money in savings etc. I only save what my employer matches on 401k. We have pensions (not like the old ones of course), will have SS and that business I started will probably generate some sort of income till I die. But that’s just it. Life IS short. I am just not one of these people that looks forward to retiring. Why do people count down the days till they retire? I have seen people in their 20’s that just can’t wait till they retire. Really? People actually want their lives to just pass them by like that?
Even though we make good money now, my kids are on their own for college. I will help them some, but I find no reason to just pay for it for them. I don't want to go into debt to help and I'm teaching them that they don't have to. My oldest is planning to do community college the first two years. He is super smart and will probably come out of college making six figures and very little debt because not just blowing 100k on a four year school even though we have nothing saved for college.
I guess I have a different take on all of this. Bottom line is there are way too many variables and different situations to point at people and tell them they are dumb for not having a ton of money in the bank.
Well, what do you know? Something we can agree on! My views on this were changed when my husband's uncle, who made a lot of money, worked till he was 70 and then finally retired. Soon after he retired, he had a brain hemorrhage and died. All those years of working and finally retired to enjoy the fruits of his labor, and then suddenly he was gone. I used to think I would work as long as I could, but I have changed my mind. I might retire with less money than I had planned if I retire earlier, but is it better to have less money and enjoy life while I can? I think so.
We have paid off our modest house and while I would like to have a bigger, nicer, house, that would mean we would have to keep working till it was paid off. Not worth it! Instead we are going to save the money we would be spending on a mortgage, and also use some of it for things we would like to do while we can. It's tons easier now that the mortgage is paid. We have no worries, and that's a great feeling. And if we HAD to live on Social Security (if it's even there for us), when we retire, we could swing it.
Any state that has a state income tax can and probably will use it in the future to generate more revenue.
The bigger picture is that city, county, state and federal revenue is declining while spending is not.
You can't escape it either because eventually it catches up to you.
Yes, Texas has homestead and also a 65 exemption.
$15K for homestead and another $10K for 65 and over.
NC has some laws in place under "homestead exemption" which basically provide some tax relief for low income seniors over 65, permanently disabled persons and disabled veterans. The exclusion is for the first $25,000 or 50% of (whichever is greater) of the TAX VALUE of the property, which must have been owned for 5 years and be the taxpayers primary residence.
Yes, you are correct. Revenue is declining but social programs and infrastructure continue to escalate in cost. It reminds me of the "find the walnut" game with cups. You know the one - hide a walnut under one of three cups, then the "magician" moves the cups around, and the observer must guess under which cup the walnut is hidden.
We are doing a lot of cup switching in my county/city. Some people are watching the hands closely; some are hoping no one can figure out what cup (taxpaying district) has been stuck with the walnut (debt). Of course, logic would tell us, the walnut always goes where there is money.
Last edited by brokensky; 08-13-2014 at 08:52 AM..
I found a summary of NC tax changes. All the hyperbole that people from other states have attached to the changes leaves me scratching my head. I don't see any of these changes as being Draconian or leveled against "poor people." Our state is trying to address issues of solvency, which is certainly more than the Federal government is even attempting to do.
Programs must be cut and revenue must be raised in order to balance a budget. I should think any responsible citizen would agree with that premise, but as is typical . . . folks try to demonize whatever party is having to make the hard decisions.
Here's a summary, sans the politically motivated (and skewered) rhetoric from biased newspapers . . .
For us the changes weren't "Draconian" just something else to consider along with the fact that the Senate wanted to also tax some social security benefits. It would be fair to assume that may be revisited in the future.
If state A would tax our retirement/social security benefits and state B is next door and wouldn't tax us, and if the quality of living appears to be roughly equal, it gives us pause for thought.
I can totally understand this. My son is 30 and he and I have had quite a few discussions about what life will be like when he is my age. No definitive way to know that, of course, but there are reasonable assumptions and the facts are plain: our government is in mind-boggling debt; states like mine are struggling to figure out how to work with our budget and keep the state out of bankruptcy. And of course, any time something that has become a "given" is put on the table -- subsidies, entitlement programs, raises -- those affected typically demonize the folks trying to figure out a terrible fiscal debacle.
You are wise to assume that your future will not include healthcare as we now know it nor will it include social security as we now have it. How to plan for that? Enjoy your life and regularly save. You have the beauty of compound interest on your side. So even setting aside a modest amount consistently will pay off at 65. Other than that, assume that your generation - filled with such bright, technically savvy, globally minded young folks -- you will find new solutions. I have faith in that.
One thing that I think people on this and the personal finance board often forget is that retirement "as we know it" is really a construct of the last century for all but the very wealthiest. It is a blip on the historical radar due to our recent technological progress and relative prosperity.
Prior to that, if someone was elderly and/or infirm, their children and the community would pitch in as they were able, much as is done in many traditional Asian cultures. Bills and debt, to the extent we know them now, were much smaller or didn't exist. I doubt there was much in the way of health care costs (as we know it) because medical care was generally simple and primitive, as well as having fewer big corporate players in the mix. There were no phone bills, cable bills, constant car payments, or any of the other debts we're accustomed to. Moreover, if someone became gravely ill, they didn't have as much in the way of life-sustaining measures as we do today. Life expectancies were shorter, and retirement was much shorter.
One my great aunt's never worked outside the home. Her husband was apparently a diligent saver, but he died in 1980. Between the life insurance, his small pension, government assistance (asked my grandmother about her last year and she said the aunt was on assistance), and their savings, she was able to pay off the home, and never worked a day again. It was a meager existence, but she did it. She was only in her 40s when he died. She died two years ago at 80 after being in a nursing home for five years and on dialysis for the better part of that. Obviously, there weren't enough assets to pay for her long-term care. The nursing home has rights to the house, but so far hasn't done anything with it, as her daughter continues to live there. I'm guessing whatever her insurance or Medicare won't cover will just be written off.
Many people like to talk about retiring in their 40s or 50s, but it's also true that many of those people will still be alive at 75 or even 85. With lifespans lengthening and retirement ages coming earlier, many people are going to be "retired" for nearly as long or perhaps longer than they were in the workforce. Retirement was historically probably between five and ten years. Today, twenty and even thirty year retirements are not abnormal. It's much more difficult to fund such a lengthy retirement compared to a short one. We haven't figured out how to deal effectively with this problem as a society. Combine these lengthy retirements with stagnant to decreasing real income, increasing health care costs, and poor savings rates, we're headed toward meltdown.
I truly think that the pendulum is going to swing back the other way, as there simply isn't the money collectively to pay for all these lengthy retirements.
For us the changes weren't "Draconian" just something else to consider along with the fact that the Senate wanted to also tax some social security benefits. It would be fair to assume that may be revisited in the future.
If state A would tax our retirement/social security benefits and state B is next door and wouldn't tax us, and if the quality of living appears to be roughly equal, it gives us pause for thought.
I agree - the changes have not been Draconian for me, either. I reviewed SC's tax policies (and what services are available for hubby) before making my final decision to keep my primary residence in NC. I am on the border on NC/SC here in Charlotte. In the end, it wasn't going to be a benefit for us, financially, to move to SC. We have always kept Charleston in the back of our minds as a retirement spot, but real estate prices made that less attractive, too - and we wanted to stay in closer proximity to healthcare providers we have already established.
I was referring to how several folks in earlier posts have characterized the tax changes in NC (not to you). I have been lectured about the immoral and draconian policies from my home state's legislators, and have also been accosted with over-the-top sensationalist editorials from biased newspapers in NC.
According to those folks, NC is starving babies and sending their milk money to greedy rich people, whilst our legislators laugh and clap their hands in glee.
Well, what do you know? Something we can agree on! My views on this were changed when my husband's uncle, who made a lot of money, worked till he was 70 and then finally retired. Soon after he retired, he had a brain hemorrhage and died. All those years of working and finally retired to enjoy the fruits of his labor, and then suddenly he was gone. I used to think I would work as long as I could, but I have changed my mind. I might retire with less money than I had planned if I retire earlier, but is it better to have less money and enjoy life while I can? I think so.
We have paid off our modest house and while I would like to have a bigger, nicer, house, that would mean we would have to keep working till it was paid off. Not worth it! Instead we are going to save the money we would be spending on a mortgage, and also use some of it for things we would like to do while we can. It's tons easier now that the mortgage is paid. We have no worries, and that's a great feeling. And if we HAD to live on Social Security (if it's even there for us), when we retire, we could swing it.
I did exactly that. I took an early retirement with a reduced pension.
But I always had early retirement as a goal and saved extra over the years.
I wanted to play rancher girl for a few years and bought myself a 45 acre ranch. I lease out 30 acres and have donkeys and chickens and cats. Couldn't have done this if I waited til 65 or 70 to "start living".
I agree - the changes have not been Draconian for me, either. I reviewed SC's tax policies (and what services are available for hubby) before making my final decision to keep my primary residence in NC. I am on the border on NC/SC here in Charlotte. In the end, it wasn't going to be a benefit for us, financially, to move to SC. We have always kept Charleston in the back of our minds as a retirement spot, but real estate prices made that less attractive, too - and we wanted to stay in closer proximity to healthcare providers we have already established.
I was referring to how several folks in earlier posts have characterized the tax changes in NC (not to you). I have been lectured about the immoral and draconian policies from my home state's legislators, and have also been accosted with over-the-top sensationalist editorials from biased newspapers in NC.
According to those folks, NC is starving babies and sending their milk money to greedy rich people, whilst our legislators laugh and clap their hands in glee.
The key word is our legislators as we get to vote them in or out not them that ain't us.
I agree - the changes have not been Draconian for me, either. I reviewed SC's tax policies (and what services are available for hubby) before making my final decision to keep my primary residence in NC. I am on the border on NC/SC here in Charlotte. In the end, it wasn't going to be a benefit for us, financially, to move to SC. We have always kept Charleston in the back of our minds as a retirement spot, but real estate prices made that less attractive, too - and we wanted to stay in closer proximity to healthcare providers we have already established.
I was referring to how several folks in earlier posts have characterized the tax changes in NC (not to you). I have been lectured about the immoral and draconian policies from my home state's legislators, and have also been accosted with over-the-top sensationalist editorials from biased newspapers in NC.
According to those folks, NC is starving babies and sending their milk money to greedy rich people, whilst our legislators laugh and clap their hands in glee.
We lived in the Charlotte area many years ago. I worked in Charlotte and my wife worked in Ft Mill, so we built our house in Ft Mill. We cruised through last year after not having been there for several years. Blown away by the growth along 77 down to Ft Mill. Drove by our old house which is now in the shadow of Baxter Village. No more hearing the cows moo there on a quiet day.
Easy to take a self-centered, avaricious position when one is talking about someone else's life, someone else's worth, someone else's dignity.
I'm sorry you felt threatened by moral repudiation of the antisocial perspectives you prefer. Regardless, I'm talking about the morality of the decisions regarding the nation's economy and its impact on people, not any specific person's money. This highlights a critical lesson you need to learn - that life is not always just all about you.
It is sad to read about the puerile and petulant nature of NC politics.
Fortunately you don't live here. Fortunately the residence of North Carolina will determine the future of our residents and will participate in the future of yours. Perhaps this legislature has cut to much and the previous spent to much and was booted out. Time will tell.
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