State Refund

Surprisingly our small Illinois tax refund appeared in our account over night. We mailed our return March 2 to Galesburg IL. That's right, Springfield is the capital but evidently the clearing house is located in Galesburg. Maybe that's where they hide the $ to cover tax refunds so the government doesn't use it to reduce medical costs for the uninsured.

The latest out of Springfield, is hospitals, clinics, doctors, and the like will be limited to collecting 35% of some one's income to cover medical bills.

More genius plans ahead from the State with the soon-to-be-indicted impeached Governor.

This will help explain why I am so surprised our state refund appeared at all.

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Last Day

Today is the last day of the month and the quarter. Your quarterly statements from brokers, mutual funds, and retirement holdings will arrive in the next two weeks.

How depressing to see the numbers that were down so much at the end of 2008 even lower. How sad to see your savings making near 0%. Maybe you hold equities that paid dividends year to date.

What's in the future? What do you hold as certain? What can you ultimately count on? I assure you it's not your financial security.

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Cheap Entertainment

Bob and I have not seen a movie in a theater since last year. Most of our entertainment is through the TV but I have found a great game on line.

I am on Facebook which is a good tool for staying in touch with loved ones. Marney posts pictures of our granddaughter as do family members in New York, Indiana, and Missouri. I've caught up with friends in Ohio and Kentucky I haven't seen in years.

Through Facebook, I have discovered the fun of Scrabble on line. I can play a public game or I can play with a friend making a play when I get on line. It's fun and since there's no time restraint and I have Webster beside me, I have had some good moves.

These are the days that many are looking for cheap or free entertainment. It's much easier when the weather is good but this weekend was wintry. This summer the city has free concerts in the park downtown. The holidays like Memorial Day and July 4 will include parades and fireworks.

Just thought I'd share one option for cheap entertainment. There is no membership fee for Facebook.

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In The Money

I just checked our bank accounts and there it was. Our federal tax refund which was promised by April 7 arrived over night in our passbook account. We mailed our tax returns March 2 and I had checked the irs.gov site several times. That's how I knew when to expect our refund.

With it and my expected tax season bonus from work, we can cover the first installment of our real estate taxes which is due June 1. Feels good.

Because our savings account and money market account are earning near Zero, the only holding we current have which kicks off interest (or dividends) is our GNMA fund at Vanguard. It's earning near 4% now but we expect that rate could fall.

For the short term, we will keep our savings account at the bank to hold cash flows necessary for living. Longer term $ will stay with Vanguard, our mutual fund family of choice.

I need to remember the second installment of our real estate taxes is due September 1.

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Bloated Government

Barney Franke is a voice calling for more control of all companies that are too big to fail and have financial problems.

Wait, wait.

Don't we have bankruptcy that comes with bankruptcy judges and bankruptcy lawyers? Are there not different levels of bankruptcy?

Aren't there thousands of attorneys who specialize in balance sheets, fixed assets, tax laws, and the like?

Why does government - let me make that Government as it's getting bigger and bigger and further into debt - even think it is the best option for running a company? Any company.

Barney, you got some 'splanin' to do. If the government had not forced banks to make unhealthy, unlikely bets on mortgages for the unemployed, there might still be a healthy Freddie Mac/Fannie Mae. Let's take your fingerprints. I believe your hands were deep into the pressure that started the fall of the house of cards.

Bankruptcy. Professionals are available that have led the likes of United Airlines through the valley and out again. Bankruptcy.

Why does Government need to be the answer. Are they all insecure and afraid of losing elections? They should be but too many are dooped into making our leaders into saints. There are no saints in Congress.

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One Example

A recent tragedy is an example of government-run care coming up short. Canada has the single pay health coverage for each and every person. Do not be fooled. Employed people and those who can afford it, carry private policies. With real insurance, these are the people who get seen in emergency rooms. At least here, the uninsured have hope of being seen at the hospital.

Bob and I have been to Toronto and Trenton in Ontario several times. I have seen the lines formed outside clinics. I've seen people using crutches and canes in the wrong hand. It was obvious to me they purchased the equipment because a knee repair or a hip replacement were not available yet.

Award winning actress Natasha Richardson experienced a head injury which caused bleeding between her skull and brain. The pressure buildup caused her death.

With prompt diagnosis by CT scan and surgery to drain the blood, most patients survive. Could Ms. Richardson have received this care? In Canada, no. In the U.S., yes.

In addition, Canada has no medical helicopter available for transport. Time ran out for Natasha. There was no true emergency care and no way to get to the U.S. for appropriate care.

Is this where we are headed? I pray not.

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Banks

So, toxic assets will be off the books of the banks and money will flow again. What a relief.

However, there are banks that want out from under the TARP thumb. Northern Trust will likely pay the strings (penalties for repaying TARP $ early) and be free to do business. This is a good bank being held down.

I suspect there are other financial institutions that are healthy or near healthy and want to be free to do what they do - make money. Free to pay execs compensations and bonuses and free to answer only to their stockholders.

With the toxic (aka legacy which is Obama's term reflecting the problem back to the prior administration) assets off their books, won't other banks prefer to pile up $ to buy themselves out of the TARP confines?

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IRS.GOV

I checked the website irs.gov. I have done this a few times in the past 3 weeks since we sent in our tax returns.

The site offers a "Where is My Refund" element. Before now the site has said they had no record of our return and check back in another week.

Now the IRS claims to have our return and promises our little refund April 7. Since we are having it directly deposited into our passbook savings account, I will check on it from our personal banking site.

I realize if we had filed electronically, the refund would have arrived even earlier. The difference in interest earned for a few weeks amounts to pennies.

I'll let you know when the $ hits the bank. I suspect our small refund from the State of Illinois will take another month. The State is running in the red. I hope they don't hold up our $ like they have been holding up $ due to vendors.

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Spring

I am ready for Spring. Here she comes. It's dark now and 25 degrees. Hurry, Spring, hurry.

I love the new greens of new life. The bulbs that are now pushing up leaves. The robins who arrived last week to search the still solid ground for protein.

I love not hearing the furnace kick in so often. I love food grilled. I love opening the windows and airing out the winter blues.

I wanted to share encouraging thoughts of renewed life and things we can count on. Why? This administration is not to be trusted. While we are upset about AIG, the government Treasury is buying back treasuries which is the ultimate manipulation of inflation/stagnation. The government printed $1 trillion this week. Our $ is worth less and less. The rollercoaster has left the platform.

We are learning that the bonuses at AIG were protected by this administration and written into that stimulus monster bill that no one read. Tim Guethner, Chris Dodd, and higher are really responsible and were aware.

It's also coming out that we gave $, billions, to banks of foreign nations. That's just coming to light. The same people were aware of that part of the redistribution of your and my $.

Come, Spring, bring new life and a feeling of optimism as my hair blows in the first big fall of the coaster rails.

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Floating Legislation?

Did the President just float a balloon to see how it would float? Throw it out there and watch for the reception?

We have been at war with terrorists since days after September 11, 2001. We have an all volunteer military. No draft.

Our reserves have been called into active duty. Many of our fine men and women have served several tours in the Middle East.

This week the balloon was floated, rising slowly and quietly. With the distractions of socializing the medical costs and AIG contractual bonuses, it nearly passed into the outer hemisphere.

The balloon, we are told, has been shot down or pulled back to earth. What balloon? The idea that our service men and women should cover the costs of their battle injuries with their work provided policies. At least, have them submit to their own coverers first and then the government would cover the rest.

Our veterans have been provided with full medical coverage since it was declared by the real Abe Lincoln. We the People have VA hospitals and services here and abroad to serve our brave soldiers.

Well, this balloon didn't float. Keep your eyes on the skies. There will be other spectacular attempts.

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Remember 1993

We need to remember our past lest we repeat repeat it.

While everyone is upset about the AIG bonuses, let us work to discover if the contracts are legal. Let us look to our Tim G (the only one who can do the job). I believe he was aware of contractual bonuses before the middle of February.

There are many calling for caps on salaries. The President declares no executive will receive compensation exceeding $500,000 annually if his/her company took $ from the government. Will we see the best people to steer those vessels jump ship?

Some of us remember President Clinton who also lived in envy of industry leaders' incomes. In 1993 while we were in a down economy, he signed a law limiting a company from deducting a salary of more than $1,000,000 from its taxes.

Do you remember the explosion of stock options? Bonuses became the way to compensate the highest earners. It still is.

I imagine the AIG bonuses are legal. I think the government or at least our man Tim was fully aware of them.

Are "they" using the bonus outrage to distract us from the next wave of $ that will soon wash into the financial institutions. With us all angry and possibly envious, Mr. Tim will be busy printing more $.

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Breaking Contracts

Everyone is upset about the AIG bonuses. We have over $1,500,000,000 invested there and we are the biggest of their shareholders. Of course, we are upset about millions in bonuses but not overly upset about the $1.5 billion semi-gifted to them?

The bigger question is: Were the bonuses due under contract? If so, shouldn't those contracts be honored?

The government will aim to break those contracts. That's the way they are operating these days. Breaking contracts, weakening the honor of contracts.

Outrageous? No. The courts will be given the power soon to break the mortgage contracts that exist that the government deems unfair.

Unfair. What is fair? Isn't entering into a binding contract fair? Is it fair to the lender? The lender entered into the contract taking the risk. Is it unfair to the lender to break the contract? Is my mortgage or yours unfair? Where does the line form?

Where is the honor in broken contracts?

Where is the outrage over the billions given to bail out AIG? The sensible thing (hind sight is better) would have been to let them enter bankruptcy which would have sorted out these bonus contracts and the monster would have been broken apart and pieces sold.

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Optimism

Optimism. Bright outlook. Lighter steps. Whistling and smiling. Off to work I go today.

Why optimistic today? I appreciated the Fed Chair Ben Bernanke on CBS 60 Minutes last night. I started thinking, yes, we can. He has a plan. He is a student of the Great Depression. He sees an end to this recession (he called it a recession) and a strong future beyond.

Yes, we can.

I won't mention that Tim Guithner and his lack of a plan, lack of optimism, lack of vision. It's his part that can bring us right down. Could he please get something done. We were convinced he was the only one capable of doing the job. Come on. Get it together.

Yes, we can.

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Half Again

Half again, 50% increase. That's quite a hit.

I realize many states' income tax rates are quite higher than Illinois. I found the latest published rates for 2008. Rhode Island requires 25% of federal liability. Whew.

Others that are higher: California at 9.3% top rate, Iowa 8.98%, Minnesota 7.85%, New Jersey 8.97% which is less than New York, Oregon 9.0%, DC 8.5%, and Vermont 9.5%.

There are states that only tax interest and dividends like Tennessee but have no earned income tax. Their sales tax rate is 7%.

Here are the states with no individual income tax: Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming.

So maybe a 50% increase is expected for the great state of Illinois, home of Abe and Rod. The 4.5% proposed is not bad compared to New Jersey or Vermont; however, it makes Indiana's 3.4% look pretty good.

Indiana is one of the few states that was running in the black before last summer. How could they do that well with such a small income tax rate? Plus a sales tax rate of 6%.

Want to be a Hoosier?

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Say It Isn't So

It has begun already. Rumbles of a second stimulus package. Say it isn't so. A second go-round when the first hasn't been seen working anywhere.

Another stimulus may put off the pain for a few years but I'm afraid of the inflation or deflation that will follow. If we keep printing $ and feeding the problem, what price the cost? It will far exceed the $ spent initially.

We need a dose of foul medicine and a walk through the valley together. Please research the numbers of the late 1970s. Unemployment, inflation, interest rates. A very scary time. Then read into the 1980s. Discover the solution.

Read about the 1930s. Very, very sad numbers. Read about all the programs created and the $ spent. Discover the solution that worked then. It was not FDR's New Deal.

The truth is the unraveling of FDR's programs and the subsequent bigger government framework led the way to last fall's crisis. The government helping those who will not help themselves for generations created the Uncle Sam of handouts.

Our President has told us this current situation is worse than the Great Depression. Action is imperative. The spending has to be quick and great.

Now, more $ after bad. Is America listening and watching?

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Shopping

I've been working my two part time jobs and have had little time to shop. I have a guest bed that has a frilly pink spread which I want to replace with something grown up yet sensible.

I ordered a green spread on line yesterday along with window panels. I found it in a sales catalog sent to me because I have ordered from this company in the past.

Yesterday on the website they offered $1 shipping for each item. Since the window panels are sold separately - really odd, I paid $3 to ship those items. They are in stock and should arrive next week.

The spread with 2 shams and the window treatment came to $80. So for $83 I will have a new look in the guest bedroom. I'll let you know the site if I am not satisfied.

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Confused?

Citibank/Citigroup reported profits for the first two months of 2009. Wonderful news. Their stock price went up $0.40 yesterday.

I am confused. With an injection of $25,000,000,000 from you and me, their balance sheet shows a larger liability. So it doesn't effect profit. However, this stock has paid dividends and We the People are expecting a fair return on our investment near or better than 5%.

Has our 5% return been figured into their profit proclamation? We should assume the best. We will need that return on our investment.

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Eyes Are Opened

"Our government has forced what I believe is a false choice between sound science and moral values," President Obama declared as he signed documents changing U.S. science policy.

"It is about ensuring that scientific data is never distorted or concealed to serve a political agenda - and that we make scientific decisions based on facts, not ideology."

I am thrilled that the science will prevail and we can move beyond the myth of global warming. Let the voices of the scientists ring true. Remove the political agenda. Remove the shackles that bind.

Back in the late 60s and early 70s I jumped fully onto the band wagon. If we did nothing, we would soon be entering an ice age. I read and I warned. I was very concerned and thought others were just ignorant.

Once again, science will be free to inform. This should be the end of cap and trade enslavement. We will be free to worry about what we put in landfills across this great land.

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Adjustable

Are you adjustable? How hard was it to get up early in the dark this morning? It will take me about 2 more mornings to adjust. Right now I feel sleep deprived and in the need of caffeine.

My drive to work has been adjusted. There is major construction at the first main intersection between my house and work which is scheduled to last 2 years. So I have adjusted my route jogging west, then north, and back east again to bypass that intersection.

We have all had to adjust our spending. More are saving and putting off purchasing. When the increase in our take-home paychecks appear, will you spend it, save it, or pay down debt?

We will be watching the Senate this week hoping they can adjust to the times and remove some of those outrageous earmarks in the budget proposed and passed by the House. They need to adjust their spend, spend, spending.

I heard this morning that the Barbie doll is 50. There have been over a billion of them sold over the last 5 decades. A billion over 50 years. One billion. Not 2 billion, 38 billion or 487 billion.

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Wealth Envy

The First Lady was working a soup kitchen but she got little done having to pose for cell phone pictures.

My cell phone is lucky to receive enough signal to register and ring incoming calls.

The President wants to spread the wealth. Maybe this fellow doesn't need too much because he's got lunch covered.

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Exit Stage Left

The last administration took great grief for not having a published exit strategy for the war in Iraq. Do you remember that and the shame that was heaped upon W's head?

I would like someone to ask the current administration what their exit strategy is or strategies are. We the People hold partial ownership in banks, insurance companies, and auto makers. What is our exit strategy for any of these?

This administration has made many destructive moves in the last 2 months. Capitalists and risk takers are avoiding decisions and moves. They have been criminalized and targeted.

What is Obama's exit strategy? Why is no one asking him? How long will the good guys be persecuted? With millions wanting work, how is there hope without private businesses? Small businesses? Free enterprise?

Let us call for unbinding hope. Unbinding the way to prosperity for all.

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Defeated?

Are you feeling like Joe the Plumber who wanted to buy the plumbing company and had many questions for Obama back in mid-October?

I think most of us are going to live under the goal Obama stated quite clearly: "I think when you spread the wealth around, it’s good for everybody."

He also said, "My attitude is that if the economy’s good for folks from the bottom up, it’s gonna be good for everybody."

They persecuted Joe. They investigated his entire life to find trash about back taxes and traffic tickets.

Mr. Limbaugh does not want Obama's Marxist economy to succeed. He believes life can be good for folks from the top down. He knows that hard working Americans lost their jobs making RVs, yachts, working the casinos in Las Vegas, and building small jets. As the wealthy withdraw their spending, more restaurants will close. More health clubs will be shuttered. Jewelers will struggle. Contractors will sit idle.

Now we see the strategy to deflect attention to the Dem's enemy du jour - Rush. Deflect, don't watch the little man behind the curtain who is rearranging life as we have known it, deflect.

I'm writing to Sen. Bayh of Indiana. A voice of reason. There are over 9,000 earmarks in the budget bill. If Obama will not keep his word to review each line of the budget, let there be reasonable Senators who care about the debt we are creating.

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Itemizing

As you prepare your income taxes, chances are you will be itemizing. That's on Schedule A where you list your taxes paid to states, real estate taxes, mortgage income paid, medical expenses, investment and business expenses. Also, charitable giving.

But the rich will not be allowed to deduct charitable gifts if they earn over $250,000. I've heard they may limit mortgage interest as well.

I wonder the damage this will do to medical research, the arts, and humanitarian efforts like food banks and Habitat for Humanity. [Food banks rely on cash donations as well as canned goods.]

You might consider it barbaric if the rich give only because they can deduct the $. You may be right but their accountants will inform them and they will possibly think twice before contributing.

If the mortgage interest is not deductible, they will pay off mortgages and deny the banks the interest income. Possibly.

I think the medical professionals vow to do no damage. Maybe a line like that should be in the President's oath. Time will tell the damage done in the first 3 months of 2009.

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Filed & Mailed

Sunday afternoon Bob and I signed our tax returns. He mailed them yesterday. Now we'll wait for our tiny refunds.

The logo in the corner of this blog is a service offered by the IRS on their website. I'll give them 10 days and then I'll start using this feature to track our refund.

Many have noted the change in addresses. If you owe the IRS (you should be mailing your return close to April 15), your return and your check will travel to Cincinnati. If you are claiming a refund, your return travels to Fresno CA. These clearing houses are for residents of Illinois as well as other states but not for all states.

In Illinois, if you owe, the return goes to Springfield; however, if you anticipate $ from the state, you file in Galesburg. This is a change this year.

If you wonder why we did not efile (file electronically), I think part of the answer is that we are old fashioned. There's some ritual to putting pen to paper, signing this legal declaration of 2008 events and numbers.

I'll let you know how the IRS site helps.

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Change in Paycheck

The IRS has issued new withholding tables. They asks that employers start using these new tables as soon as possible but not later than April 1. Most workers will see a boost in their take-home pay soon.

Last year most of those who file tax returns, received a stimulus check. As married joint filers, Bob and I received $1,200. The goal of the new stimulus monster spending bill aims to provide a tax credit of $400 or $800 (for marrieds) for 2009 and 2010.

There is a fade out for higher earners. Adjusted gross incomes (the last number on the first page of your 1040 tax return) in excess of $75,000, (singles) or $150,000 for married couples filing jointly are the cut offs.

This change in your paycheck should soon be evident. Workers will get the benefit of this change without any action on their part. This means that workers do not need to fill out a new W-4 withholding form.

It was confusing. I knew they were not lowering the tax brackets and tax time next year may be difficult having to come up with the difference they allowed us to keep through reduced withholdings. However, with the work credit, the effect should be minimal.

Hope it is clearer for you. For now, we'll just get more take-home pay. Spend your $13 or so per week wisely.

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Needy

Bob and I are clamping down. No, not dieting. We are just being very careful with our $.

A simpler life has few needs. We all want stuff but it's the needs we are attempting to stick to. We need to be clothed, warm, and fed. Beyond those we need reliable cars. We have more than one and are mindful of the amount of driving we do.

We needed inks for our printers this past week. While at Office Max (they had 15% of anything you could get into a bag), I picked up some file folders. Bob asked if we needed those. He was right. We can get by for now.

We know we need to keep working as our retirement funds have taken quite a hit. So, we need our jobs. We need health coverage which we are fortunate to purchase through his pension at $95 a week.

Maybe the Congress could start to think of needs versus wants. Earmarks are wants.

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