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The Tax Implications of Certain Bank Rates
Wed, 02/04/2009 - 17:03People don't think about it when they are considering where they want to set up their different savings account, but interestingly enough, there are some possible serious tax implications based on what you do in regards to your savings. While it might be seducing when a bank offers good credit cards and online savings, is there something underneath that might make it a bit less attractive?
When you're playing with tax brackets, it's sometimes better to be earning the most possible in one bracket than the least possible in a higher bracket. While you are making more money, you are stuck paying a much higher percentage on your income so you actually make less at the end of the day. Who wants that? If you are planning on investing your money in a CD, it is important to know the bank CD rates before hand. If the interest pushes you into the next bracket, you'll be paying a much higher percentage.
I am all for investing your money in CDs because it's easy interest and the such; however, if you're going to do that, you need to keep in mind that you might not make any money. You could actually walk away paying more money because of the interest that you earned. Interest is income and it really is as simple as that.
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Your Tax Dollars are Paying to Bail Out Other People
Tue, 02/03/2009 - 00:49Look, it's really quite simple. We pay our income tax every year, something that a lot of people argue is not constitutional. We pay it and we pay it on time which is something that some of our politicians can't seem to do correctly. Regardless...We pay it every year in the hopes that it will come back to help further our country.
According to a lot of political commentary, our tax dollars are being used to further expand the bonuses of Wall St. banks. Every year, I'm sure that you pay a nice hefty amount of income tax. It sucks, but you got to do it, right? Well, would you do it if you knew that $20 billion of that money was going to give executives who probably fired you tremendous bonuses? I doubt it.
But, we can have hope that our tax dollars might go to something good. When looking at the Obama Stimulus Plan Details, we can see that there is some hope to better our economy. There is the one side that plans on lowering taxes and then the other side, that uses a lot of our tax dollars, to try and jump start the economy. Regardless...If it works, it works, even if we have to spend a ton in our own tax dollars.
According to a lot of political commentary, our tax dollars are being used to further expand the bonuses of Wall St. banks. Every year, I'm sure that you pay a nice hefty amount of income tax. It sucks, but you got to do it, right? Well, would you do it if you knew that $20 billion of that money was going to give executives who probably fired you tremendous bonuses? I doubt it.
But, we can have hope that our tax dollars might go to something good. When looking at the Obama Stimulus Plan Details, we can see that there is some hope to better our economy. There is the one side that plans on lowering taxes and then the other side, that uses a lot of our tax dollars, to try and jump start the economy. Regardless...If it works, it works, even if we have to spend a ton in our own tax dollars.
