{"id":486,"date":"2024-12-05T18:39:00","date_gmt":"2024-12-05T18:39:00","guid":{"rendered":"http:\/\/lengel.net\/crossetthill2\/?p=486"},"modified":"2024-12-05T19:13:40","modified_gmt":"2024-12-05T19:13:40","slug":"the-three-little-vermonters","status":"publish","type":"post","link":"http:\/\/lengel.net\/crossetthill2\/2024\/12\/05\/the-three-little-vermonters\/","title":{"rendered":"The Three Little Vermonters"},"content":{"rendered":"\n

…and the Big Bad Tax Man<\/strong><\/p>\n\n\n\n

Once upon a time, there lived three average Vermonters, neighbors in the same town. They were very much alike. Each lived in a home of about 1700 square feet on a small plot of land and enjoyed an income of about $60,000 per year. <\/p>\n\n\n\n

One was a teacher. One was a landlord. The third lived off his investments. They loved living in the Green Mountain State.<\/p>\n\n\n\n

One day the Big Bad Taxman came along. He knocked on the door of the first house.<\/p>\n\n\n\n

\u201cLittle teacher, little teacher, let me in!\u201d<\/em>
(He was correcting papers with a pencil and pen.)<\/p>\n\n\n\n

\u201cI see that your income is about 60K.\u201d<\/em>
\u201cThat\u2019s right Mr. Taxman, it\u2019s on public display.\u201d<\/p>\n\n\n\n

\u201cSo first six percent for Social Security,<\/em>
Then another for Medicare, to support your maturity.\u201d<\/em><\/p>\n\n\n\n

\u201cThat seems like a lot \u2014 four thousand at least,
And by the time I can use it, it might not exist!\u201d<\/p>\n\n\n\n

\u201cLet\u2019s move on to income: for the Feds twelve percent,<\/em>
Then five more for the State – all money well-spent.\u201d<\/em><\/p>\n\n\n\n

\u201cTwenty-four percent, it looks like you\u2019re taking;
This makes me sad, it\u2019s my bank you are breaking!\u201d<\/p>\n\n\n\n

\u201cBut that\u2019s not all: there\u2019s your Property Tax:<\/em>
For your house and land, we\u2019ll need 5K in my sack.\u201d<\/em><\/p>\n\n\n\n

\u201cTwenty-one thousand! You\u2019ve got to be joking;
I\u2019m not a rich man; my finances are choking!.\u201d<\/p>\n\n\n\n

\u201cAnd don\u2019t forget sales tax: a full six percent<\/em>
And nine for your meals, that you can\u2019t circumvent.<\/em><\/p>\n\n\n\n

For you that\u2019s another two thousand dollars\u2026\u201d<\/em>
\u201cPlease stop! I give up! I just want to holler!<\/p>\n\n\n\n

Of my income you\u2019ve grabbed thirty-eight percent.
It doesn\u2019t seem fair, though I see where it went.\u201d<\/p>\n\n\n\n

<\/p>\n\n\n\n

Next day the Big Bad Taxman knocked on the door of the second house.<\/p>\n\n\n\n

\u201cLittle landlord, little landlord, let me in!\u201d<\/em>
(He was counting his rent receipts money within.)<\/p>\n\n\n\n

Cash and checks piled up on the table
The Taxman would have seen 80K if he were able.<\/p>\n\n\n\n

\u201cHow much is your income?\u201d <\/em>asked Taxman at first;
\u201cThat\u2019s none of your business,\u201d was Landlord\u2019s outburst,<\/p>\n\n\n\n

\u201cI\u2019ll file my taxes with the feds when I must,
\u201cAnd whatever my figures, you\u2019ll just have to trust.\u201d<\/p>\n\n\n\n

\u201cWith deductions and credits and depreciation,
Six thousand and three\u2019s the net taxable notation.\u201d<\/p>\n\n\n\n

\u201cWell, none of that\u2019s wages so no contribution<\/em>
To Medicare, Social, or redistribution.\u201d<\/em><\/p>\n\n\n\n

\u201cNow as to your income\u2026\u201d<\/em>
\u201cMy fed AGI
Is practically zero; my accountant is wise:<\/p>\n\n\n\n

She makes sure that number is so very small
That to the Feds I pay almost nothing at all.\u201d<\/p>\n\n\n\n

\u201cSo half of that,Vermont gets three-sixty.<\/em>
Please pay that in April, and don\u2019t be too tricky.<\/em><\/p>\n\n\n\n

Now property tax: how much is it worth?<\/em>
Your house with four apartments, sitting here on the earth?\u201d<\/em><\/p>\n\n\n\n

\u201cIt\u2019s considered as rentals, so its tax assessment
Is based not on its value, but return on investment.<\/p>\n\n\n\n

They take the net profit, and multiply by twenty;
On that basis: a hundred thousand is plenty.\u201d<\/p>\n\n\n\n

\u201cOkay then, please give me seventeen hundred;<\/em>
I hope that\u2019s not too much, that you don\u2019t feel plundered.\u201d<\/em><\/p>\n\n\n\n

\u201cNow finally your sales tax: two thousand will do;<\/em>
Your total: four thousand, and three sixty-two.\u201d<\/em><\/p>\n\n\n\n

\u201cGoodbye, Mr Taxman, I\u2019m pleased to oblige
With a small contribution to keep government alive.\u201d<\/p>\n\n\n\n

<\/p>\n\n\n\n

Over to the third house, the retired investor. The Big Bad Tax Man knocks at the door.<\/p>\n\n\n\n

\u201cLittle investor, little investor, let me in!\u201d<\/em>
(Checking his stocks, his bonds, on his screen.)<\/p>\n\n\n\n

(Year-to-date growth shows positive gains,
Equal to forty thousand and change.)<\/p>\n\n\n\n

\u201cLet\u2019s see what you\u2019ve got there, these tidy investments;<\/em>
How much are they worth? What\u2019s the assessment?\u201d<\/em><\/p>\n\n\n\n

\u201cThat\u2019s none of your business, you lowly civilian;
Suffice it to say, it\u2019s more than a million.\u201d<\/p>\n\n\n\n

\u201cI can\u2019t tax you on that, it\u2019s fully exempted;<\/em>
Nor state nor federal, though we be tempted<\/em><\/p>\n\n\n\n

To ask to you pay a fair share of that money.<\/em>
(With all that you have it does seem kind of funny.)<\/em><\/p>\n\n\n\n

How about your income? Let\u2019s see your ten-forty.\u201d<\/em>
\u201cNot much to report there, nothing too sporty:<\/p>\n\n\n\n

Our social security\u2019s taxed but in half;
Subtract from that deductions on my behalf,<\/p>\n\n\n\n

And you\u2019ll see that my taxable income is slight:
For Feds and the State my tax burden is light.\u201d<\/p>\n\n\n\n

\u201cNone of it\u2019s wages, so there\u2019s no benefaction<\/em>
To Social Security, not any subtraction.\u201d<\/em><\/p>\n\n\n\n

\u201cFor income you owe me five thousand and three;<\/em>
Let\u2019s talk now of tax on your nice property.<\/em><\/p>\n\n\n\n

It\u2019s valued at 300K like your neighbor\u2019s<\/em>
So I\u2019ll need five thousand, that\u2019s this year\u2019s flavor.\u201d<\/em><\/p>\n\n\n\n

\u201cFrom that five thousand, to be fair to me,
A homestead break of two thousand and three.<\/p>\n\n\n\n

I\u2019m old, and my income is under the limit;
I owe you three thousand, and that\u2019s what I\u2019m giving.\u201d<\/p>\n\n\n\n

\u201cNow sales tax is easy, same as your neighbors:<\/em>
About two thousand, and I\u2019m doing you a favor.<\/em><\/p>\n\n\n\n

Your net contribution to the commonweal<\/em>
Adds up to ten thousand: how does that feel?\u201d<\/em><\/p>\n\n\n\n

<\/p>\n\n\n\n

At the end of the day, the Big Bad Tax man carries $38,281 in his sack:<\/p>\n\n\n\n

$22,700 from the teacher;<\/p>\n\n\n\n

$  5,081 from the landlord; and<\/p>\n\n\n\n

$10,500 from the investor.<\/p>\n\n\n\n

Does this seem fair to you?<\/p>\n\n\n\t

\n\t\t

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