Home > government > The Government’s Here. Bend Over.

The Government’s Here. Bend Over.

Sunday, April 17, 2011, 14:59 EDT Leave a comment Go to comments

Internal Revenue ServiceI just finished my income tax returns. I’m getting a little bit back from the state, as I usually do. But the feds are bleeding me dry.

The reason for my large 2010 tax bill is that I took a distribution from my tax-sheltered retirement account last summer to put a down payment on a house. Because the U.S. tax code is inherently illogical, such a distribution for the purpose of first-time home purchase is penalty-free from an IRA, but not from a 401(k). So in addition to the extra tax, I also have to pay a penalty. It wouldn’t be so bad if I had a few months of mortgage interest to deduct, thereby offsetting at least some of the taxes and penalties. But due to circumstances beyond my control, I didn’t actually close on the house until a month and a half into this year. Hence the aforementioned bloodletting.

I feel angry. I feel violated. I feel like making a dart board out of a picture of Timothy Geithner and practicing my aim all day. And speaking of Timmy G, why do I have to pay a penalty for doing something LEGAL with my own money, but he managed to get his penalty for ILLEGAL non-payment of taxes waived? If I don’t pay that penalty, the leeches at the IRS will put a lien on my house. When Geithner didn’t pay, they made him Secretary of the Treasury.

And the yahoos in Washington scratch their empty heads wondering why half the country supports the Tea Party movement.

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