Home > Taxes


September 11th, 2006 at 04:31 am

Damn, wrote out a long entry which not only didn't get posted but now there seems to be an entry in my blog which includes ALL of the prior postings, without spaces. Yikes.

Anyways, the gist of the longer post is this: considering a part-time job offer (on top of full-time work), I realized that the true value to consider was not the salary offered, but how much of that salary I would take home after taxes. Since my full-time job puts me squarely in the middle of the 25% tax bracket, that's 25% to the feds, then another 11.75% for social security, medicare, state taxes, local taxes, and state unemployment taxes. That leaves 63.25% of the offer as the value in question. Looks like a lot less, then.

Seems silly to me to tax income--decreases incentives. I'm beginning to see the wisdom of plans that suggest taxing consumption instead.

3 Responses to “Taxes”

  1. boomeyers Says:

    I think the run on thing is a temporary glitch. Noticed it in another blog.
    I guess you could look at it too as more money is more money, whether it be 63% or 100%. I have been fighting going to work full time to speed things up. Tough choices!

  2. LuxLiving Says:

    Use that large tax figure to increase your determination to start an official home business so that you can take off all the deductions for home office, travel, business trips, etc.

    Also does this part time employer allow you to put back in a 401-K? If so, and you signed up then that could decrease your tax bite. Or if your full time employer does then you could increase your contributions there to compensate for some of the other income.

    Make sense?

  3. Dido Says:

    A tax-shelter is not possible with the part-time job, but is possible with the full-time. Unfortunately, I won't be taking much advantage of it this year--I realized over the summer that I seriously need to increase my emergency fund. I depleted it a year ago putting a chunk towards my house downpayment, and wiped the rest of it out over the summer as I struggled to live 4 months without a paycheck. So I'm starting over, I now own a home, and the full-time job is a one-year contract with my last paycheck arriving August 20, 2007. So I've got to build up the emergency fund, and fast (i.e., in one year, and also pay off 2400 in debt during the same time frame. That's one reason TO take the part-time offer. It also means that I don't get the tax advantage for my savings.

    But I had to give an answer last night, and I said "no," mostly because of exhaustion. Could be a temporary thing, and I told him I was unsure and if he didn't find someone else in the next two weeks to call me back--but I didn't want to stick myself with something I'd regret. I'm fairly certain a SECOND part-time offer will be coming my way later this fall, and that played into the decision, too. Teaching one class overtime is ok, teaching two overtime is do-able but exhausting.

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