Cranial Soup

What Republicans Do Not Want You To Know About Poverty and Taxes

2011-09-25T23:12:00.001-04:00

The poverty line in 2010 for a family of four was $22,314.

The Fair Labor Standards Act, which sets the minimum wage at $7.25 per hour, is one of the most violated of all the federal labor laws.

About 15% of all wage earners in the US are earning at or below the minimum wage.

The average full time minimum wage worker earned about $15,000. ($7.25 per hour x 40 hours x 52 weeks = $15,080)

She paid at least 20% of her income in taxes.

Even though it might be true that she had no federal income tax liability, she still had other taxes to pay.

Payroll taxes such as

Social Security
Medicare
Disability
Unemployment
State income tax
sometimes local income tax

She also had additional taxes such as

sales tax
excise tax on fuel
USF surcharges on
- telephone service
- natural gas
- electricity
property taxes, even if she rents (it would be hidden in the cost of her rent)

Additionally, she pays for her healthcare out of her pocket because minimum wage jobs do not come with healthcare benefits. She pays a higher price for a doctor's office visit than the insurance companies do. ($75 self pay vs. $35 paid by insurance) If she ever needs to go to the hospital, it could easily cost her over $4500*, even more if she has to be admitted.

She also does not get retirement benefits and is looking at a reduction in her income down to about $600 per month when she is too old to work and begins collecting Social Security, and will be expected to pay a portion of that to receive Medicare benefits. And that is only if there is still a Social Security system by the time she is old enough to collect.

A typical minimum wage worker is not a teenager from a middle-class family flipping burgers for some extra pocket cash to buy CDs, movie tickets, lipstick, nail polish, and video games.

Most minimum wage workers are women, standing on their feet all day working various jobs within the service industry. They are some of the hardest working people in this country.

Many are single mothers with more than one child, and many of those are receiving little or no child support to help offset the costs of raising those children. They also have the additional costs of child care, if they have no family support system capable of providing free care so that they can work.

And Republicans think they make too much money and need to have their wages cut, by either reducing or eliminating the minimum wage. They also want to cut or eliminate the social programs that help them to survive. They actually think this will help the poor and lift them out of poverty.

* I do not have medical insurance. I pay out of my pocket for all of my medical care. Back in 2006 I passed out in my kitchen, which resulted in a head injury requiring 8 staples to close the wound. I was taken by ambulance to the nearest hospital, which resulted in a bill that was just over $3000. This did not include the additional charges for physicians fee, lab work, or the MRI. Those were billed separately and were an additional $1500. My town is one of the small number in this area that provides a free ambulance service to its residents, but if they didn't, the ride would have been an additional $300.

If you don't pay these bills, the hospital may sue you, which could result in garnishment of your wages, which has the potential of knocking a minimum wage worker's pay down to about $150/week until the debt is paid off (with interest, court costs, and lawyers fees). There is also the very real possibility that instead of or in addition to garnishment, the court may seize your bank account (woe to you if you just made a deposit to pay your rent) and/or the local Sherriff may come in, seize and sell off the contents of your home, leaving you with no more than $1000 in personal assets and possessions.

Finding Inspiration in a Billionaire Without a Home

2008-05-26T12:48:00.008-04:00

Nicolas Berggruen is a multi-billionaire that doesn't own his own home...or a car...or not much else, for that matter.

He lost interest in acquiring and owning material things. At some point, he realized that you can't buy happiness, nor can you find it in possessions...and then he sold off everything he had.

According to Mr Berggruen, “Living in a grand environment to show myself and others that I have wealth has zero appeal. Whatever I own is temporary, since we’re only here for a short period of time. It’s what we do and produce, it’s our actions, that will last forever. That’s real value.”

As a hopeless packrat, I am starting to really feel the burden of possessions and have recently embarked on a whole house de-junking adventure. While I am not too sure why I own most of what I have, I do understand why I can't just toss it away. My frugal nature prevents me. Some of it could be useful to someone else. But I can't locate the someone else that would provide a home for my unwanted things.

I had considered placing an ad somewhere, promising a 'gift' to anyone and everyone that shows up at my house on a particular weekend. If the turnout is good, I should have a lot more breathing space on the following Monday.

Just imagine the look on the face of the person that shows up and gets an Encyclopedia Britannica set, originally worth over $2000. I have been trying to get rid of that, unsucessfully, for the last 5 years!

There are other things that I can't part with, not because I need them, but because of the symbolic nature of the objects. They have a sentimental value to me. It's my feelings for the person they remind me of, that prevents me from discarding them.

Why do humans place such a high value on silly objects that were owned by deceased loved ones & friends, and people they will probably never see again? Is it a thought that by keeping these things that you are keeping a part of them alive? Keeping the good times of the past by keeping the objects of the past? Can the memory live without the objects? How much of a long term impact will it truly have on your life, your memories, and your feelings, if you part with grandma's old worn out sewing box? Or a bracelet that your deceased brother made for you back when you were 9 years old? Or baby clothes that were worn by your child, who is now all grown up?

I am going to use Nicolas Berggruen as my inspiration, and try to learn to let go of "stuff". At the very least, it will make it much easier to pack, the next time I have to move.

Some day I am going to _____.

2008-05-07T12:10:00.002-04:00

Too many times I hear friends make statements about things they want to do and then make stupid excuses on why they can't.

For instance, they see a restaurant they would like to try, but then make the excuse that they don't have a girlfriend or boyfriend, so they can't.

But when they do have one, they sit around banging their head against the wall coming up with ideas on what to do, where to go, etc...forgetting all those things they wanted to do that they previously made excuses on why they couldn't.

The end result is seeing movies they don't really want to see, going places they don't really want to go, doing things they really don't enjoy...or sitting at home on the couch with their date and watching TV shows they don't really like.

They never get to do those things they really wanted to do. They get into the habit of denying themselves and it causes them to miss opportunities to do interesting things.

Why does one have to wait till they have a boyfriend or girlfriend to enjoy life? Why can't you enjoy it now, doing everything you want?

If there is something you want to do, find a way to do it and don't make excuses. Just do it. Don't wait.

You don't need a boyfriend or girlfriend to share the experience with. A friend or family member will do, if you absolutely can't do it alone. You will get into the habit of seizing the opportunities every day to enjoy life, and then when you have someone else to share it with, it will come naturally.

Life should be an adventure, and you should live it, experience it, enjoy it. No more excuses.

Now, what is it that you want to do today?

I am going to _______ today. Fill in the blank while I am out having a picnic and playing my recorder in the park, all by myself. I always wanted to do that, but never did. (I hope the birds don't mind my bad playing. I am more than a bit rusty)