Wednesday, September 02, 2009

Things I don't understand.....

I understand the difference between gross and net incomes.
What I don't understand is, why when someone is trying to
determine how much money you have to pay bills with, the
amount that counts is the gross income. A good share of
which one never gets to see.

The usual deductions are Federal taxes, State taxes, S.S.
and Medicare. At least those are the minimum. Then there
is retirement, insurance and a few others.

Fed and State taxes you are lucky if you get to see 7%
back as a refund. S.S, you have to wait until you turn 65
or get disable before you get to see that and even then
it is in small payments over years. And if you die young
you never see it, or only a small part of it. Same thing with
retirement. And insurance depends on how sick you are
if you get a return on that. And you actually don't get it,
the doctors and hospitals get that.

So WHY ON EARTH, do the loan companies count the
gross amount. When you don't get that money, some of it
ever. Why don't they count the net. That is the part you
actually get to take home with you. That is what you get
to buy things with. Have the comforts of home.

And if you are a parent putting a child into college, well,
those of you who already been there, did that, know you
can be over waged, when in actuality you are under.

One who gets about $44,000 actually gets about $26,000,
if they are a single parent. Where is the fairness of that?

How can you claim you get more money than you actually
get? How can the companies make you say you get more
money than you actually get to take home?

I know, I know, this has been going on for years..but for the
life me, I don't understand why


Anonymous said...

IT is the great way of keeping people of less income thinking they make more then they do and using that number against them to keep them poor and under control of the rich that is my take on it. See when one buys a house they go by gross well when those people received their ARM from the bank or other loan institution they were so happy and went out and bought their dream home. Now they are all out on the street not being able to pay their ARM which now increases about every month and the institutions that loaned them the money promising they could get a lower rate when the increased payment will start say no you can't refinance you don't make enough money. See it was a ploy now a lot of these people are homeless living on the streets in tents accross the country and if they are lucky in public housing they lost their dream house and are now poorer then before. Sometimes i wonder if the gross income thing came about to get more tax money off people for it they taxed on net pay the gov would get a lot less from most people. It is just another way of keeping the little person from getting the higher positions on the income ladder. Heck, if they keep using our gross income and making the material world look so good to people and the dream of a nice house and car and things and use the gross not the net pay to loan us that money and give us credit cards look at all the people they can ruin financially and on top of that keep their big shot status. If people used their heads maybe some would save more and give those big shots a run for their money living in their manufactured homes and apartments they could afford and saving. But then the big shots don't say those people living in those places are not to be listened too not smart unless it is a upscale apt or condo so don't you think using the gross income really is a way of keeping the middle class in their place and bumping some of them into the lower class thus less upper crust so the upper crust don't have to share their wealth with the many but only a few. Besides can you imagine a just out of college big degree person starting out with a lowly apt or a manufactured home? They need the big shot house or condo and fall into the trap of being in debt to the company store so to speak they just don't call it the company store these days. Slyraccoon's take on things

Grayquill said...

I don't understand either - tring to get kids through college is the pits for the middle income family.
All my kids had to work as they went to college. They are the better for it. When they come up against one who has had it given to them. My kids easily kick their butts in the verbal sense. The employers who have hired them have all found young people who know what it means to get up early and put in a good days work. There is a silver lining. There was no loan or grant that could pay for that.