The Tax On Being Financially Responsible

We live in a world of taxes. Everything you or I buy is subject to taxation, either specifically (as in gas and cigarette taxes) or in general (sales tax). We are taxed on our salaries (payroll tax), on our investments (capital gains tax), and even on death (the estate tax). Each of these taxes hits different segments of the population more-so than others, depending on things such as income, net worth, and even personal habits.

But there is another tax, relatively unknown but extremely insidious, that targets only the financially responsible. Before we get into the specifics of that tax, however, I should define exactly what I mean by financially responsibility, since the tax affects each category differently. In my opinion, there are three types of people when it comes to finances:

The first type of people are what I will call the "financially irresponsible". These are the people that spend more than they make, have a chronic lack of cash in the bank, and rack up a large amount of unsecured debt.

The second type of people are what I will call "financially on-the-fence". These are the people that spend exactly as much as they earn. No more, no less. When the first unexpected bill arrives (e.g. car repair, medical deductible, etc.), they will often fall, if only temporarily, into the first category,.

The third type of people, as you might have guessed, are the "financially responsible". They not only refrain from going into debt, but also consistently put money away into a "rainy day" fund, either for emergency situations or retirement.

The financially responsible are the bedrock of banking industry, being the least likely to default on any loans they do take on (e.g. mortgages), so it may surprise you to learn that this mysterious tax not only targets the financially responsible, but actually works to the advantage of the financially irresponsible! What is this tax, you ask?

I'll call it the "Fed Tax".