The Problem of Gross Verses Net Income.
Posted: Saturday, January 17, 2009
by straight talk
Now I wrote to this before and as usual not many people were interested. However it is a reality that I feel very strongly led to this debacle. The problem is the method of determining available income for purposes of lending or assistance. In my opinion it is totally wrong. They.,meaning government and business all use the gross income of everyone living in the home. A failure in my opinion of immense proportions. They need to switch to net. That is what is actually in your pocket, especially Uncle Sam. Rhetorically that is if he still is "our" uncle?
Now on the surface all that looks great. Now lets look at reality. Take home or net for the worker after deductions is actually $1500 per month . The actual net income for that entire family then equates to an actual NET of $3900.00.
So actual expenses are as follows.
Mortgage w/ escrow / pmi
1700.00
Car payment
250.00
Medical Coverage, medicines
500.00
Second Mortgage
200.00
Telephone
100.00
Utilities
200.00
Misc, food, needed supplies
800.00
Car fuel for work
120.00
Out of pocket miscellaneous
150.00
Total out of pocket $4020.00
This leave a net minus of $320.00 . Yes and even with no second mortgage that equates to a minus $120.00 a month "available". Yet not these wizards of finance in government and business.
We all can recognize the reality of life as just experience by the fuel gouging, usury, doubled payment requirements on credit debt. This family was in the red before they started. How much more with that? Yet if you throw in the "gross" all of a sudden there is a surplus, really, of $ 1180.00. More then enough non existent income.
Rhetorically please tell me this is not entrapment? Especially for those who are lacking education, trusting, or perhaps just don't understand? Rhetorically, you tell me this is not a method to exploit? Rhetorically you tell me this is not a falsehood? They actually say, you are qualified or not on gross. To the lenders you are, to the government you are not qualified for help. How very strange? However, both say you have this imaginary money.
Now we all know this is fact, truth reality. They allowed it and we allowed it. Why, hey we got those cards, we got our credit based on a falsehood. Yet, if a falsehood who lied? They did the math. They said you were qualified. You said ok, yes and even when you knew you didn't have it you were ok with that as long as you could "get by".
Once you missed though they leaped on you. Caught in a snare there was no hope of getting out of until you were totally destroyed and corrupted. It was a snare of your own making as well as theirs. Tell that to a judge. If there was a smart lawyer out there he would immediately have a class action suit, but why when they can make fortunes in bankruptcy and debt collection?
As for the government, it is a way to limit help, plain and simple, period, fact of life. They know it and we know. We say to ourselves how can they say that, but they do. Yes "unfortunately" you make to much. You don't qualify.
So until we face the lies of this society don't hope for change. Hard but truth. Hope yes but hope in what is right, good, just. I leave it with you. The facts, reality and what it is and getting worse because those who were " just getting by" are far and few inbetween. Hundreds of thousands being laid off in this last week alone. Do you really think, that is those of you that have, you are untouchable?
Wake up America and yes the world before it is too late. It can be turned around by strong, people of courage and honest action whoa re really by deed who they profess to be. Yet sadly and in my opinion, I don't look for that coming from any of them in what they will do. Why some of you do is well past me.
Robert T. Melaccio Sr. 2008 Copyright 2008 Robert Melaccio Sr.
This Article has been viewed 306 times. (Not updated in real-time.)
Top-level comments on this article: (2 total)hello again mr. melaccio david nocPlease log in to respond to this comment.hello David, nice to hear from you.Please log in to respond to this comment.
Wow Robert, you got me on this one....this is great!! I totally agree with you. And you are right about the imaginary sum of money that appears on paper, looks great there but definately not reality. It is actually a deception to pursuade the actual loan officer to give the amount of money that is being requested to some poor unfortunate and unsuspecting youngster to reel them into a spiraling debt. I am with you on this one, and its this kind of activity that has got to stop. Our leaders or powers to be need to review these deceptive tactics! Well done my friend, well done!!! Oh, don't get me started on "Uncle Sam", I don't know about you, but my uncles never lied to me or cheated me out of anything, instead of "Uncle Sam" saying, "Uncle Sam Needs You", which at the time was a great patrotic slogan, it is now "Uncle Sam Needs Your Money, and Everything else you have"!! I better stop there or I will write forever....Great article, AND realistic.Please log in to respond to this comment.Gary, thank you most kindly for your comments and reading. We certainly all do not agree on everything or how to solve it but I am a firm believer that we cannot hide from truth. That is why I persist, otherwise why the effort? Until we all together demand truth and stop ignoring reality we will continue down this negative path. I truly believe hope is necessary but hope in reality not empty words or deeds. Best wishes once again, Robert.Please log in to respond to this comment.
We want your comments! If you can read this, you don't have javascript enabled, so you can't use this comment system. Please enable javascript.