Today, I received my pay stub for Friday which is our payday. Our quarterly incentive bonus was paid on this check. Let me start out by saying that I am thankful to my employer for paying out this bonus every quarter if we meet certain expectations.
What upsets me is that I paid an unbelievable amount in taxes because of the Federal Government feels that they are entitled to take an additional portion of my money because I did well (could we call it a tax on prosperity?) They withhold at 28% on any residual income (bonuses, etc). Then withholding is taken for Medicare and Social Security. Last but not least in my case, the State of Minnesota took $115.00.
Please understand that I am not against paying taxes. I believe that every citizen should pay taxes and the Bible reinforces this in several places as well.
What bothers me is that I worked hard for the bonus that I received only to watch the various Government entities take more taxes than usual and leave me with less money.
The Fair Tax is looking much more attractive right now…
Do you think the Government penalizes people for working hard (earning bonuses, etc.)?