Once again, we’re faced with the complexity of the tax code. For ordinary wage earners, it should not be this difficult.

The withholding rules are screwy enough that we are once again getting a small refund from the Federal Income Tax and paying about the same amount to our California State Income Tax. What irks me the most is I’m using THEIR formulas to calculate my withholding amount, and it is never correct. In fact, the state is assessing a penalty for underpayment this year, as they have decided it was foolish of me to think they know what the heck they are doing when they set the withholding rates. Silly me.

We claim zero exemptions. Now, I’m having an additional amount taken out each pay period. I’ve calculated the extra amount based on the amount per month to make up the shortfall in 2007, pro-rated for the remaining months in the year. I have a note on my calendar to adjust this extra withholding amount in late 2008 to reflect the non-prorated amount each pay period going forward. My personal situation doesn’t change much from year to year, but the tax laws do. I fully expect the (Democratic) morons running the state to change the rules and penalize me again in 2009 for some other crystal ball failing.

Its all because I’m rich, of course.

Before you think I’m among the “top 1%” you keep hearing about, think of your combined household income. Add together the gross salary … before taxes … of all the wage earners in your household. For most households, that’s a husband and wife or other domestic partners. Now that combined figure will determine if you are rich. What’s your number?

Is your household number OVER $44,000? That’s the median household income. You might think you are in the middle class if your number is over that amount, but certainly not rich.

Is it over $80,000? You are in the top quintile, sharing that level of income or higher with just 20% of the highest earning Americans. You are, in a word, rich.

If you and your spouse both earn $19.50 an hour …. you are rich. No doubt about it, and its about time you started paying your share! We must tax you more to help those that live in households where they earn half of what you earn.

If you object to this line of reasoning you are not only rich but you’re stingy too.