What would you do if you didn't have to pay any income tax?Submitted by Lofabred on Wed, 02/22/2012 - 14:13
If the government didn't take your money, how would you put it to use? I don't know about you all, but a 20-25% increase in my pay would be life-changing. I already don't have any debt, so I was just contemplating the possibilities of such a big jump in my cash flow.
We like to talk about how good it would be for America as a whole or for our economy in general, but I thought I would contemplate it on a more personal level. How would I spend that extra money? Would my activities actually be beneficial to my community (locally/state/nationally?) and/or encourage the economy?
For me, I would probably save up for a year or two, buy a modest house at 20% down and with a short term, 10 or possibly 5-year mortgage. At present, I'm looking at saving for probably 3 or more years to make that same 20% down, and it may be for a slightly-less-modest house, and I would probably get a longer 10 or 15 year mortgage. (20% down is the minimum amount to no longer be required to buy mortgage insurance in Wisconsin, so I refuse to put any less as a down payment)
Shortly after buying a house, I would be able to afford my own shop, which I'd use for as a hobby sorta thing for a while, but would eventually use to start my own business. At that point I wouldn't presume to know what my income would be, but it's safe to say I would be able to set my schedule and all those fun benefits that come with being self-employed. This would let me do more community service work, potentially homeschool my kids in the future, among other things. Essentially, in about 3-4 years I would be where I want to be. At present, it would probably take 6 years or more - and who knows what will happen as the time frame gets longer - maybe I find that I can no longer start my business.
Now let's see, did I help the economy? I bought a better house earlier on better terms. I became an entrepreneur who is an actual producer of physical goods, and maybe an eventual employer. And I'm more involved in my community and family life sooner. Yeah, I say I did okay.
How about you?