A Lesson On Taxes
by Big Dog on Mar 18, 2010 at 05:07 Political
The state of New York has notified a number of taxpayers that refunds they were expecting will be delayed for at least a month. The state is in a cash crunch and does not have the money to give back to its rightful owners.
New York is not the only state delaying refunds by issuing an IOU.
When a person receives a refund of taxes from the government it is not government money. It is money that people overpaid, it belongs to them and the states have no right to hold up that money.
Part of the problem lies with people who think a tax refund is free money from the government. Too many people do not grasp the concept that this is their money and that they paid too much. They do not understand that this money represents a free loan to the government.
The best thing people can do is to work out their deductions so that they do not owe or get a refund. This is nearly impossible and I am satisfied if I am plus or minus $200. I do not want them using my money for free especially when I can be investing it and getting interest.
If more people did this they would be able to actually save.
People should also keep in mind that this is a one way street. If taxpayers owe the government money the government expects it to be paid when it is due and if it is not then interest and penalties will accrue (unless you are a member of Obama’s administration). The government does not really care how poor your financial situation is, you are expected to pay what you owe and to pay it on time.
Funny, government works to help people who can’t pay their mortgages, can’t pay their car payments, can’t pay their other bills (tough economic times you know) and even allows itself to delay payments of your money back to you.
God forbid you should have trouble paying the taxes you owe.
They will send a hit squad for you even if you only owe 4 cents (an amount you are not obligated to pay).
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Tags: iou, lies, New York, refund, taxes
Overwithholding is likely to be brought to a sharp end by this sort of legalized theft. It will provide the education a century of tax accountants and advisors have never been able to ram home in the American mind.
Funny. When France instituted the “forced loan” in the years just after the Revolution, in combination with a number of other fiscally insane measures it brought about the collapse of the Revolutionary government and the rise of Napoleon. I wonder what will happen here?
Part of this health care takeover is a huge expansion of the IRS. That should be comforting to people.
When a person receives a refund of taxes from the government it is not government money. It is money that people overpaid…
Exactly!
The only time that Mr. AOW and I get a refund is during the years that our medical expenses are below the itemization level. And even then, as one who is self-employed, I always apply that refund to next year’s estimated taxes.
Hey, you know who needs “a lesson on taxes?”
The Tea Party folks.
And you would think they would know a bit about that.
D.
—————-
Exposed by none other than Bruce Bartlett, adviser to President Reagan and Treasury official under President George H.W. Bush.
“For an antitax group, they don’t know much about taxes.
Tea Partyers were asked how much the federal government gets in taxes as a percentage of the gross domestic product.
Tuesday’s Tea Party crowd… thought that federal taxes were almost three times as high as they actually are. The average response was 42% of GDP and the median 40%.
…acceptable answers would be 6.4%, which is the percentage for federal income taxes; 12.7%, which would be for both income taxes and Social Security payroll taxes; or 14.8%, which would represent all federal taxes as a share of GDP in 2009.”
The Misinformed Tea Party Movement, Forbes article. (March 19, 2010)