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UCGal
ParticipantI’m also comfortable being on the low side of the insurance range.
Both my husband and I work. Our only debt is our house. Our retirement funds and 529’s are pretty well funded. Our thought was that if the survivor didn’t have the mortgage to worry about – they could afford to maintain the household (including daycare/after school care expenses) on a single income. We took our mortgage debt (which is our total debt) and added $100k.
So called experts and calculators have told me I needed insurance to pay off my house – when I was single with no kids. I laughed and said that my parents could sell it and my cats would have to fend for themselves. Why pay off my house if I was dead and no longer needed to live in it.
We’ll drop insurance when the house is paid for.
In the meantime – the money we’re saving by having smaller policies is going into the kids college funds.
Congrats on the pregnancy/growing family! Parenthood is pretty darn fulfilling.
ParticipantI’m also comfortable being on the low side of the insurance range.
Both my husband and I work. Our only debt is our house. Our retirement funds and 529’s are pretty well funded. Our thought was that if the survivor didn’t have the mortgage to worry about – they could afford to maintain the household (including daycare/after school care expenses) on a single income. We took our mortgage debt (which is our total debt) and added $100k.
So called experts and calculators have told me I needed insurance to pay off my house – when I was single with no kids. I laughed and said that my parents could sell it and my cats would have to fend for themselves. Why pay off my house if I was dead and no longer needed to live in it.
We’ll drop insurance when the house is paid for.
In the meantime – the money we’re saving by having smaller policies is going into the kids college funds.
Congrats on the pregnancy/growing family! Parenthood is pretty darn fulfilling.
Participant[quote=flu]
Actually, many canadians at the border do just this. They get all their auto repair, big purchases done in the States to escape all the VAT/provicial taxes. Of course, they have to be careful about re-entry into canada, because if it’s so obvious, they end up paying customs at the border.
[/quote]When I was a kid my dad used to get auto body work, and car paint jobs down in TJ. He got busted and had to pay taxes once, when crossing the border – the border patrol agent smelled the fresh paint on the beat old Ford Cortina.
I lived in Bellingham for 3 years. (US side, just south of Vancouver, BC). The mall there, Bellis Fair, used to ask customers if they needed/wanted the bags/shoe boxes, etc… It was a policy developed after realizing all the Canadian shoppers were dumping the tags/bags/boxes in the parking lot.
I was there 2 weeks ago visiting friends. I asked if the malls were still overrun with Canadians shopping – the answer was no – the exchange rate precludes it. (I lived there in the early 90’s). They still come into Blaine for cheap gas though.
People will go to measures to save sales taxes – but there’s always a risk of being caught. My dad learned that the hard way. I’ve had to pay duty when bringing wine back from Italy… The government will try to collect. (This was pre-9/11 when you could carry liquids on a plane as carry on.)
Participant[quote=flu]
Actually, many canadians at the border do just this. They get all their auto repair, big purchases done in the States to escape all the VAT/provicial taxes. Of course, they have to be careful about re-entry into canada, because if it’s so obvious, they end up paying customs at the border.
[/quote]When I was a kid my dad used to get auto body work, and car paint jobs down in TJ. He got busted and had to pay taxes once, when crossing the border – the border patrol agent smelled the fresh paint on the beat old Ford Cortina.
I lived in Bellingham for 3 years. (US side, just south of Vancouver, BC). The mall there, Bellis Fair, used to ask customers if they needed/wanted the bags/shoe boxes, etc… It was a policy developed after realizing all the Canadian shoppers were dumping the tags/bags/boxes in the parking lot.
I was there 2 weeks ago visiting friends. I asked if the malls were still overrun with Canadians shopping – the answer was no – the exchange rate precludes it. (I lived there in the early 90’s). They still come into Blaine for cheap gas though.
People will go to measures to save sales taxes – but there’s always a risk of being caught. My dad learned that the hard way. I’ve had to pay duty when bringing wine back from Italy… The government will try to collect. (This was pre-9/11 when you could carry liquids on a plane as carry on.)
Participant[quote=flu]
Actually, many canadians at the border do just this. They get all their auto repair, big purchases done in the States to escape all the VAT/provicial taxes. Of course, they have to be careful about re-entry into canada, because if it’s so obvious, they end up paying customs at the border.
[/quote]When I was a kid my dad used to get auto body work, and car paint jobs down in TJ. He got busted and had to pay taxes once, when crossing the border – the border patrol agent smelled the fresh paint on the beat old Ford Cortina.
I lived in Bellingham for 3 years. (US side, just south of Vancouver, BC). The mall there, Bellis Fair, used to ask customers if they needed/wanted the bags/shoe boxes, etc… It was a policy developed after realizing all the Canadian shoppers were dumping the tags/bags/boxes in the parking lot.
I was there 2 weeks ago visiting friends. I asked if the malls were still overrun with Canadians shopping – the answer was no – the exchange rate precludes it. (I lived there in the early 90’s). They still come into Blaine for cheap gas though.
People will go to measures to save sales taxes – but there’s always a risk of being caught. My dad learned that the hard way. I’ve had to pay duty when bringing wine back from Italy… The government will try to collect. (This was pre-9/11 when you could carry liquids on a plane as carry on.)
Participant[quote=flu]
Actually, many canadians at the border do just this. They get all their auto repair, big purchases done in the States to escape all the VAT/provicial taxes. Of course, they have to be careful about re-entry into canada, because if it’s so obvious, they end up paying customs at the border.
[/quote]When I was a kid my dad used to get auto body work, and car paint jobs down in TJ. He got busted and had to pay taxes once, when crossing the border – the border patrol agent smelled the fresh paint on the beat old Ford Cortina.
I lived in Bellingham for 3 years. (US side, just south of Vancouver, BC). The mall there, Bellis Fair, used to ask customers if they needed/wanted the bags/shoe boxes, etc… It was a policy developed after realizing all the Canadian shoppers were dumping the tags/bags/boxes in the parking lot.
I was there 2 weeks ago visiting friends. I asked if the malls were still overrun with Canadians shopping – the answer was no – the exchange rate precludes it. (I lived there in the early 90’s). They still come into Blaine for cheap gas though.
People will go to measures to save sales taxes – but there’s always a risk of being caught. My dad learned that the hard way. I’ve had to pay duty when bringing wine back from Italy… The government will try to collect. (This was pre-9/11 when you could carry liquids on a plane as carry on.)
Participant[quote=flu]
Actually, many canadians at the border do just this. They get all their auto repair, big purchases done in the States to escape all the VAT/provicial taxes. Of course, they have to be careful about re-entry into canada, because if it’s so obvious, they end up paying customs at the border.
[/quote]When I was a kid my dad used to get auto body work, and car paint jobs down in TJ. He got busted and had to pay taxes once, when crossing the border – the border patrol agent smelled the fresh paint on the beat old Ford Cortina.
I lived in Bellingham for 3 years. (US side, just south of Vancouver, BC). The mall there, Bellis Fair, used to ask customers if they needed/wanted the bags/shoe boxes, etc… It was a policy developed after realizing all the Canadian shoppers were dumping the tags/bags/boxes in the parking lot.
I was there 2 weeks ago visiting friends. I asked if the malls were still overrun with Canadians shopping – the answer was no – the exchange rate precludes it. (I lived there in the early 90’s). They still come into Blaine for cheap gas though.
People will go to measures to save sales taxes – but there’s always a risk of being caught. My dad learned that the hard way. I’ve had to pay duty when bringing wine back from Italy… The government will try to collect. (This was pre-9/11 when you could carry liquids on a plane as carry on.)
Participant[quote=gandalf]State of CA tax code is badly in need of reform. Worse than federal code because of the revenue implications for the state, amplitude of increase/decrease across business cycles.[/quote]
I don’t disagree with this. I lived in PA and they had a flat tax for state income. No shielding money in a 401k, no deductions for interest, for kids, etc. It was an eye opener. I’d lived in 2 states prior to moving to PA. We know CA’s system – similar to the Fed system – deductions for everything to decrease your taxable amount. In WA – high sales tax to make up for no income tax. Even food is taxed in some counties. In PA it was 2.8% (now 3.07%) of every dollar earned. No deductions. 401k contributions were taxed.
It’s all trade offs. I’m not sure if people understand that.
Participant[quote=gandalf]State of CA tax code is badly in need of reform. Worse than federal code because of the revenue implications for the state, amplitude of increase/decrease across business cycles.[/quote]
I don’t disagree with this. I lived in PA and they had a flat tax for state income. No shielding money in a 401k, no deductions for interest, for kids, etc. It was an eye opener. I’d lived in 2 states prior to moving to PA. We know CA’s system – similar to the Fed system – deductions for everything to decrease your taxable amount. In WA – high sales tax to make up for no income tax. Even food is taxed in some counties. In PA it was 2.8% (now 3.07%) of every dollar earned. No deductions. 401k contributions were taxed.
It’s all trade offs. I’m not sure if people understand that.
Participant[quote=gandalf]State of CA tax code is badly in need of reform. Worse than federal code because of the revenue implications for the state, amplitude of increase/decrease across business cycles.[/quote]
I don’t disagree with this. I lived in PA and they had a flat tax for state income. No shielding money in a 401k, no deductions for interest, for kids, etc. It was an eye opener. I’d lived in 2 states prior to moving to PA. We know CA’s system – similar to the Fed system – deductions for everything to decrease your taxable amount. In WA – high sales tax to make up for no income tax. Even food is taxed in some counties. In PA it was 2.8% (now 3.07%) of every dollar earned. No deductions. 401k contributions were taxed.
It’s all trade offs. I’m not sure if people understand that.
Participant[quote=gandalf]State of CA tax code is badly in need of reform. Worse than federal code because of the revenue implications for the state, amplitude of increase/decrease across business cycles.[/quote]
I don’t disagree with this. I lived in PA and they had a flat tax for state income. No shielding money in a 401k, no deductions for interest, for kids, etc. It was an eye opener. I’d lived in 2 states prior to moving to PA. We know CA’s system – similar to the Fed system – deductions for everything to decrease your taxable amount. In WA – high sales tax to make up for no income tax. Even food is taxed in some counties. In PA it was 2.8% (now 3.07%) of every dollar earned. No deductions. 401k contributions were taxed.
It’s all trade offs. I’m not sure if people understand that.
Participant[quote=gandalf]State of CA tax code is badly in need of reform. Worse than federal code because of the revenue implications for the state, amplitude of increase/decrease across business cycles.[/quote]
I don’t disagree with this. I lived in PA and they had a flat tax for state income. No shielding money in a 401k, no deductions for interest, for kids, etc. It was an eye opener. I’d lived in 2 states prior to moving to PA. We know CA’s system – similar to the Fed system – deductions for everything to decrease your taxable amount. In WA – high sales tax to make up for no income tax. Even food is taxed in some counties. In PA it was 2.8% (now 3.07%) of every dollar earned. No deductions. 401k contributions were taxed.
It’s all trade offs. I’m not sure if people understand that.
ParticipantWe all get our talking points somewhere…
I choose to get them from the “fake news” of the Daily Show… at least it makes me laugh.http://www.thedailyshow.com/watch/tue-april-13-2010/that-s-tariffic
If we address the tax code – we need to look at how deductions are used. It’s kind of like tea-partiers wanting government to keep their hands off their SS and Medicare. If you want a flat tax – there goes your home interest deduction, there goes your child as a deduction, there goes your 15% rate on long term cap gains, there goes your cap gain exclusion when you sell your house.
I’m not saying the current system is good – it’s not – it’s seriously eff’d up. But a lot of people don’t realize they could be a worse off with a flat tax. I know I personally benefit from the home interest rate deduction, the children deductions, the long term cap gains, tax deferal through 401ks, etc. All that goes away with a flat tax.
The good side of the flat tax – corporations, presumably, would also have to pay a flat tax – so no more creative book keeping, writing off inventory, moving assets around to hide profits offshore.
ParticipantWe all get our talking points somewhere…
I choose to get them from the “fake news” of the Daily Show… at least it makes me laugh.http://www.thedailyshow.com/watch/tue-april-13-2010/that-s-tariffic
If we address the tax code – we need to look at how deductions are used. It’s kind of like tea-partiers wanting government to keep their hands off their SS and Medicare. If you want a flat tax – there goes your home interest deduction, there goes your child as a deduction, there goes your 15% rate on long term cap gains, there goes your cap gain exclusion when you sell your house.
I’m not saying the current system is good – it’s not – it’s seriously eff’d up. But a lot of people don’t realize they could be a worse off with a flat tax. I know I personally benefit from the home interest rate deduction, the children deductions, the long term cap gains, tax deferal through 401ks, etc. All that goes away with a flat tax.
The good side of the flat tax – corporations, presumably, would also have to pay a flat tax – so no more creative book keeping, writing off inventory, moving assets around to hide profits offshore.
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