January 26, 2005

Johnny, Rose Mary, and Uncle Sam

Johnny Carson and Rose Mary Woods died a day apart. One was one of America's greatest entertainers, longtime host of The Tonight Show and fixture on the Oscars telecast. The other was Richard Nixon's secretary, the woman who "accidentally" erased much of the Watergate tapes and stonewalled the investigation.

Your assignment: Write a 2000 word essay drawing parallels between these two. Extra points for linking Woods to Carson's success or linking Carson to the Watergate scandal. You have one hour. Go!

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It's nearly tax time again! For some, it means not seeing their accountant husbands for several months. For others, it means tax evasion and flights to unnamed South American countries. For me, it means a little extra bit of chaos this year.

I am getting W2s from two full-time employers, neither of which has my current address. That means waiting for them to be forwarded, but in Chicago, it likely means that they'll get lost in the mail. In addition, I have an unknown number of freelance gigs who will submit 1099-misc forms for work I did. People with freelance experience know what that means: the self-employment tax! Yay! I get to pay around a 40% tax on the income I earned through freelancing.

There are several ways of making this more bearable:
1. File quarterly returns so you're not hit with a huge bill once a year.
2. Put a set amount of your income into an interest-bearing account, so you can actually make a little bit of change on it before you have to give it to the government.
3. Sit around and do nothing until the tax bill comes and kills you.

Guess which one I picked.

I think the self-employment tax is one of the most un-American of taxes. Isn't it the American Dream to go out on your own, do your own thing, entrepreneurial spirit and all that? Go west, young man, and be your own boss? Then why does the taxman put on his heavy boots to stomp on your fingers as you reach for your divine right as an American?

Posted by mike, January 26, 2005 3:05 PM
Comments

Once upon a time, Microsoft and Sprint and Ford and Exxon (etc, etc) were all fledgling companies just starting out. Through hard work and perseverance, they rose to the heights they are at. Now they can affect American policy and change the direction of our country's tax laws to prevent others from taking their places. You, too, can live that American dream if you pay your taxes.

Oh, wait. You can't. Big business won't let you. My bad. Sorry.

Posted by: shane at January 26, 2005 3:43 PM

That's why I am very thankful that almost all of my freelance clients aren't businesses who send out 1099s. I cash the checks they write me and leave no trail behind! Except this comment on a public website, I guess.

Posted by: Amy at January 28, 2005 9:52 AM