some tax numbers for 2017

[mellowtigger]

I finally did my taxes yesterday, so it's time for a review of 2017.

My 2016 tax return shows total tax of $2,384 (line 39, form 1040A) with gross wages of $30.5K.
My 2017 tax return shows total tax of $3,048 (line 12, form 1040EZ) with gross wages of $33.8K. My taxes went up at a higher rate (not absolute dollars, but rate) than my income.

I used Turbo Tax for both of them. I don't know why it submitted the EZ form this year. Yes, I entered the home mortgage information from the Form1098 from the bank. I trust TurboTax to know what they're doing. At least I still get a nice refund, because I always have my employer withhold a lot from my paycheck. I'd much rather overpay and get a refund than suddenly owe any money.

The more interesting results came from a new offer from TurboTax. They'll import my information and show me my credit score details. It seemed free, so I did it out of curiosity.  They noted that my credit score of 720 was "Pretty Good" (who cares?) and my Debt-to-Income ratio of 14% was "Awesome" (I agree). They also noted that most people my age have a credit score of 716.

I'm not a fan of the whole credit score industry, and it's easy to tell why when I look at the details of my score.

• On-time payments does seem important.
• Credit utilization maybe is important.
• Average age of credit maybe is relevant. Mine shows 2+ years because that's the age of my mortgage, and it's the only debt that I have.
• Total accounts is hogwash. It lists 2 credit cards that have both been closed down for years, so they'll "roll off" eventually. They think that having few debt accounts is a bad thing.
• Derogatory marks does seem important.
• Credit inquiries is hogwash. Why would not having inquiries be a good thing? It means that the industry is not using your product.

The things that I most value in "living the poor life", namely NOT having any debt, is scored poorly by the credit industry. The formula is rigged to favor the frequently indebted. I disapprove.

I'm still doing better than most people in the USA.  The economics out there are still bad. The most common measures (like GDP) tend to say that things are good, which is why I continue to promote better measures of economic well-being like GINI.

• Students are in horrible debt of $1.3 trillion.
• Poverty is rising among the elderly.
• One-third of Americans would give up their voting rights for just a 10% pay increase.
• Only 39% have enough savings to cover an unexpected medical or repair bill of $1000.
• Only 56% have enough savings to cover an unexpected medical or repair bill of $400.

I plan to ditch my car at the next major repair.  I did some math, and I can use public transit in Minneapolis for about the same (barely less) than the cost of gasoline and car insurance.  Add any maintenance/repairs at all, and having a car is more expensive.  I can use that money elsewhere, so I'll try doing without a car soon.  Other people here do it, especially where I work, so I know it's a valid option.  I even have a veterinarian within walking distance, so I could carry a very unhappy cat through the winter weather on a long walk, if necessary.  I'll also try to eat more Soylent for breakfast this year instead of frozen meals (or fast food) before work.  That'll mean some more money saved.

Being poor in the USA wouldn't be so bad if it weren't for the nightmare of our medical system.  That's the only piece that I can't really plan for, and when I try, then it's plainly far beyond my price range.

P.S. 2018 April 11 Wednesday: Trump's tax cuts are everything they were expected to be, so my tax payments will only get higher in following years.  "The analysis also found that companies spent 37 times as much on stock buybacks than they did on bonuses and increased wages for workers." and "In fact, this [analysis shows] that 433 corporations out of the Fortune 500 have announced no plans to share their tax cuts with employees." and of course "... the nonpartisan Congressional Budget Office found that the Republican tax plan led to, in part, a 2018 deficit $242 billion higher than previously estimated."  On top of all that, the government itself expects this Republican tax plan to cause deficits reaching 100% of GDP in 10 years.  Notice on that chart in which years the deficit flattens (Obama 2009-2017) and in which years the deficit turns upwards (Bush "W" 2001-2009, Trump 2017-2020? 2024?).

P.P.S. 2018 April 13 Friday: Evictions are high, with 4 filed every minute in 2016. "So between 1995 and today, median asking rents have increased by 70 percent, adjusting for inflation."  I keep saying it, but the economy is bad out there.  I'm poor, but I'm doing better than most of the USA.