National revenue/Carlos Pueblo

 National revenue/Carlos Pueblo

The other day, I was informed to pay back some money for the national revenue or the internal revenue service due to two items which were not allowed to deduct on my 2019 tax return. It is called the paper audit. Every year every resident in the country is expected to file an income tax return to pay the federal government for the yearly income tax to support the federal government. We also pay local governments some local taxes to maintain all governments. This national revenue is one of the federal revenue to support all federal functions in a year. Recently, we can see that there are at least two huge spending federal law law passed in order to tackle with the Chinese Wuhan Corona Virus pandemic, one 900 billion dollars and another one 2.2 trillion dollars. Almost every one receives $3,200 checks from the federal. Another huge spending on the national infrastructure will cost 2.3 trillion dollars is on its way to the congress to be passed. I don't believe that there is money available yet it is necessary to meet the demand. I agree.

According to the economist, the national debt can be about 9% of the national growth domestic products numbers. As long as the federal can meet the debt service, we shall be alright. Most of the national investors purchase federal bonds for their savings and generate minimum interest return. They are happy. Low interest can help the federal government to manage the debt service. It is wise for the fed to borrow low interest money from all over the world and do some meaningful investment domestically. 

I disagree with such philosophy with my home economics. I want to make sure that I can pay back my debt on time before I borrow any money. I like to get something from nothing yet I don't like the debt service. I am going to withdraw my pension funds to the minimum level from now on before I can figure out a better way for a reasonable income tax obligation. If I need extra money to spend, I shall withdraw money from a regular saving account or a Roth IRA account before the end of my life. Most of my expanse is not deductible from the IRS points of view. The IRS gives me a standard deduction every year; therefore, I feel that my tax burden is higher than ever before.