Taxing severance packages 48% is a bunch of bunk...

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  1. profile image0
    wordscribe41posted 8 years ago

    I find this so wrong and irritating.  My husband's job has been outsourced and there are NO jobs where we are.  We have three small kids to feed, clothe and care for.  The government will take almost 1/2 of his severance pay upfront, further reducing the income we will have while he's unemployed. What's up with that?  Seriously, I'm tweaked.

    1. livewithrichard profile image84
      livewithrichardposted 8 years agoin reply to this

      That sux, did he work for a company that took bailout money?

    2. profile image0
      cosetteposted 8 years agoin reply to this



      that is obscene. yikes

      highway robbery, if you ask me. i'm sorry sad

  2. profile image0
    wordscribe41posted 8 years ago

    No, he worked for a Fortune 500 company that got hit by the recession.  So, they're outsourcing his IT job to "save money" since they don't have to pay benefits, etc...  Thanks, Richard.  It really does suck.

    1. Michael Willis profile image78
      Michael Willisposted 8 years agoin reply to this

      Sounds like they are taking from your husband to help keep their CEO bonus pay.
      Wow, this really sucks they did that!!!

      1. profile image0
        wordscribe41posted 8 years agoin reply to this

        Bingo...  The CEO is worthless, too.

  3. livewithrichard profile image84
    livewithrichardposted 8 years ago

    The company I worked for took the same kind of dump on me 2 years ago. It's hard not to worry but I can tell you that when one door closes another usually opens up. Just don't go into panic mode, you and your husband are highly educated and WILL land back on your feet. It will be different but it could be better if you let it. smile

    1. profile image0
      wordscribe41posted 8 years agoin reply to this

      Surprisingly, I've been pretty calm about it all along, I'm just started to get a little, well uncomfortable.  It's strange, Richard, because it doesn't seem like education matters anymore.  I hear what you're saying, though.  I do believe things will work out in the end, I really do.  And, hey, we love camping, so that's always an option.  wink  Thanks for your kind words.  Sorry you had to go through it as well.

      1. livewithrichard profile image84
        livewithrichardposted 8 years agoin reply to this

        I went through it 4 times in the previous 10 years so that last time really was the last time. I started my own permit consulting business. Everything I needed was in my head wink Luckily for me, at the time I was single and worried that I would loose all that weight I worked so hard to over-pad myself with by eating Ramen noodles every meal. Brought back college nightmares..lol 2 years later I'm earning 4x's what I was earning, got engaged (lost the weight anyway) and I never have to worry about someone else having control over my livelihood. 

        Has your husband thought about joining the consulting ranks with his IT experience? I've found that many employers would rather go with outside consultants for short term projects. It might be worth looking into.

      2. profile image0
        Ghost32posted 8 years agoin reply to this

        I've come to suspect you're absolutely right in YOUR suspicion that "it doesn't seem like education matters any more".  A few months back, my wandering mind took a looksee at some of the various "careers" I'd "enjoyed" over my pre-retirement decades--and guess what?  My largest per annum incomes were earned in precise inverse ratio to the education required for the field.  Specifically:

        1.  MLM sales (no kidding, I actually made serious money for a while with MLM--ancient history now, but I did). 
        Top earnings year:  $552,000.   Education required:  Zero.

        2.  Truck driving.
        Top earnings year:  $86,000.    Education required:  4-week driving school.

        3.  Commercial Insurance Underwriting.
        Top  earnings year:  $30,000.    Education required: 4-year college degree.

        Both dramatic and disgusting, or American-dream-encouraging, I guess, depending on perspective...lol

  4. wyanjen profile image82
    wyanjenposted 8 years ago

    hang in there ws. you'll get to the other side. it's just really hard to see it yet. neutral
    I agree about education. It's all about wits these days. And luck.

    In the meantime, feel free to let loose on us! Don't let the stress bottle up. E-mail me if you want to REALLY  let it fly - I don't ban people for profanity. big_smile

    (that's not a dig at HP, I just mean this is a public forum)
    lol

  5. profile image0
    wordscribe41posted 8 years ago

    You're so sweet, Jen.  I agree, we'll make it.  Hey, didn't you change your mug color?  It was purple before, right???  Or is my irritation making me perceive odd color illusions?

    1. wyanjen profile image82
      wyanjenposted 8 years agoin reply to this

      Yes, I am a purple mug. But, it is st pat's day.
      So, imagine that there is beer in the mug.
      lol

      @ Richard: I'm still in my losing weight with ramen noodles phase. Maybe I'll be back on my feet by fall. lol
      Good for you!! It's nice to hear the stories from folks who have gotten through it.

      1. profile image0
        wordscribe41posted 8 years agoin reply to this

        Maybe I should put my picture in photoshop, I feel so UNgreen.  You are too funny.

        1. wyanjen profile image82
          wyanjenposted 8 years agoin reply to this

          Would you like me too? I've got it up and running, doing graphics for a hub...
          lol

          1. profile image0
            wordscribe41posted 8 years agoin reply to this

            Shyly says:  "k"smile  Not even Irish, but I hate me a nasty pinch.  I can email the picture to you...

            1. h.a.borcich profile image60
              h.a.borcichposted 8 years agoin reply to this

              I just have to say...what a cool thing to do smile

              1. profile image0
                wordscribe41posted 8 years agoin reply to this

                I know, she's awesome.

                1. h.a.borcich profile image60
                  h.a.borcichposted 8 years agoin reply to this

                  I have to agree smile I do think the tax on severance is unfair.
                  You know, I had to apply for social securityin 2007 when I was diagnosed with advanced cancer. I qualified but they still denied me anyway. So I had to pay a lawyer 25% of what they owed me to get it. In the meantime I had to use my 401k to get medical care....they taxed me to death just about. But if they had approved my ss like they were sposed to - I would not have had to use it. Government.....is that where all the CEOs are?
                  Here's to things getting worked out in a hurry for you. You too Jen smile

                  1. profile image0
                    wordscribe41posted 8 years agoin reply to this

                    Oh, my...  Why on earth did they deny you?  I'm glad you got a lawyer to "help", but that's a steep price to pay.  I do hope your cancer is in remission today.

                    1. h.a.borcich profile image60
                      h.a.borcichposted 8 years agoin reply to this

                      They had a verbage dispute of all things. According to ss - the cancer had to extend into the perivesical fat, my silly pathology report said the cancer extended beyond the bladder wall. Both mean the same thing, but ss didn't know that...took almost 18 months to get an appeal.
                      I did all my surgery and chemo - doing my best. Mostly homebound with bone tumors and pain, but I am above ground smile
                      Happy St Pats Day! Holly

              2. wyanjen profile image82
                wyanjenposted 8 years agoin reply to this

                darn, If I wasn't just bout to shut down I'd do one for you too Holly!
                But I gotta be to work in about 4 hours... tongue

                1. h.a.borcich profile image60
                  h.a.borcichposted 8 years agoin reply to this

                  Get sleep and don't worry! I am german not irish smile

    2. profile image0
      wordscribe41posted 8 years ago

      Yes, Richard.  He is looking into that, he's just really scared, though.  Pretty much any job that suits him is contract work anyway, so I've urged him to consider going solo.  He's meeting with a buddy who did just that and can maybe help him out a bit.  I think if it weren't for his family, he'd be much less petrified.  He's a Microsoft Exchange/Active directory guy and it really appears the trend is toward hiring short term contractors.  Or, perhaps it's just the state of the economy making it appear that way.  We're a bit baffled as to which. 

      I know what you mean about living like you did in college.  It's so depressing.  When my Swedish ancestors came to the US they subsisted off of potatoes for a few years.  Yikes.

    3. profile image0
      wordscribe41posted 8 years ago

      Jen is amazing.  Looky at my new avatar.  I'm all smiles now.  Thanks, Jen.  I love you to death.  This WAS a great forum post to start after all.  You are so cute...

      1. wyanjen profile image82
        wyanjenposted 8 years agoin reply to this

        Hey, it turned out pretty good lol
        Sometimes they don't and you can't see til you have it uploaded.

        It is a great shot to start with, peeking over the mug like that smile

        1. profile image0
          wordscribe41posted 8 years agoin reply to this

          It's pure art, is what it is!  I love it!

    4. Pearldiver profile image80
      Pearldiverposted 8 years ago

      OMG Laura.... yikes

      As Richard has said... One door shuts and another one opens smile

      Keep positive mate: Remember the hard times are just like camping smile

      Lucky your heritage isn't Irish... best you use your swede and not spuds to sort this 'character forming' period of change. hmm

      And it never hurts to stand on a high Hill and scream into the wind.... "This is just BS!!" lol

      You will get through this... there was a reason you started writing and learning all this! (other than making good friends) hmm

      1. profile image0
        wordscribe41posted 8 years agoin reply to this

        True, Pearl.  And not to toot my own horn, but my earnings have skyrocketed of late. 

        Off to the hills.  Oh, crap...  I live in the burbs.  Roof of a shopping mall, maybe?  lol

        1. Pearldiver profile image80
          Pearldiverposted 8 years agoin reply to this

          Well there you go mate lol

          Amazing what a new body kit can do eh? lol lol

    5. profile image0
      wordscribe41posted 8 years ago

      Holly, you have an amazing attitude.  I hope you have a lot of support...  Can't imagine going through a diagnosis like that then fighting the social security battle, as well.  I hope you don't take this the wrong way, but sometimes it's good to get a little perspective on life.  You know?  I'm so sorry you still have a lot of pain.  I admire your strength...   smile

      1. h.a.borcich profile image60
        h.a.borcichposted 8 years agoin reply to this

        Life is a crap shoot...and sometimes... well you know smile It is what it is and yes, I have been grateful for the heads up to tend to what really matters. Many people don't have the chance to fix it.
        I have great support - son, hubby and mom are near. For years I helped elderly/terminally ill folks. I am amazed how many help me because at one time I helped someone they cared about.
        To me the pain is temporary as I hold to a christian belief. It gives me hope. Holly

    6. profile image0
      wordscribe41posted 8 years ago

      I have been thinking about "what really matters" a lot, Holly.  Fortunately, most of those important facets of my life are well and good.  There are some things I need to fix, however.  But, they're fixable. 

      I'm so glad you have the great support.  The whole zen "what goes around comes around" tenet is at play, huh?  Nothing makes life easier than helping, caring hands.  I experienced that after the birth of my twins. 

      Most things are temporary, really.  Thank goodness for that.  Thanks for sharing part of your story here, Holly.

      Laura

    7. profile image0
      wordscribe41posted 8 years ago

      Interesting, Ghost.  That really does seem to be a discouraging trend...  Especially disheartening when I write my student loan checks.  sad  No doubt, I will still require my kids go to school, but I think I'll have somewhat of a different approach to where they go.  The liberal arts degrees just aren't cutting the mustard.  Thanks for you input.

    8. MikeNV profile image79
      MikeNVposted 8 years ago

      The tax system is progressively higher.  So it must be a large severance.

      Next year when you make nothing you won't be able to go back and income average... went away a long time ago.

      But think about it.  It hits everyone not just those laid off.

      If you make between $33 and $80K your tax rate is 25%.  State Tax?  $5%?  Social Security Tax?  15.3% or half if your employer pitches in.

      I easily pay:

      25%
      5%... not for me but most states this much or higher.
      15.3%
      -------------
      45.3% of my income!

      This doesn't count local taxes, taxes on services, fees for my business etc.

      So yeah.  It's a lot of money and it hurts.  But this is the "going rate" for the middle class.

      Texas, Florida, Washington, and Nevada don't do income tax... and I believe one or two more states.  California I believe takes as much as 10.2% at the top!

     
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