A Lesson On Taxes

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).

Big Dog

Gunline

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Students Across The Country Protest Fee Hikes

Students across the country are protesting hikes in college tuition. The protests have become violent at times as students commit acts of vandalism and clash with police.

Decreased tax revenues and the tough economy have forced some jurisdictions to cut funding to schools and the difference will be made up in increased tuition.

So let’s get this straight, these kids are protesting a hike in fees because schools are not getting enough of our tax dollars to subsidize them. What would these students propose we do, raise taxes? Making us pay more so they do not have to would go over real well.

It is already a problem that taxes pay for higher education when many of the taxpayers are not benefiting from the expenditure.

However, I can understand the sentiment. People across the country are protesting higher taxes and an out of control big government. They are called the Tea Party.

The major differences; Tea Party members do not commit violence or vandalism and they are portrayed as villains by the Lame Stream Media.

Tell these kids to get a part time job or take fewer classes each year. Consider the experience an early start to what life is really like.

Source:
Breitbart

Big Dog

Gunline

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Obama Has A Proposal

Barack Obama will unveil his additions to the health care takeover plan he hopes to ram through before the next election. The New York Times reports:

President Obama will propose on Monday giving the federal government new power to block excessive rate increases by health insurance companies, as he rolls out comprehensive legislation to revamp the nation’s health care system, White House officials said.

This is an interesting concept that involves more government involvement in private industry so we need to add something to the plan.

The insurance companies have to be given power to block excessive tax increases by the US government.

Turn about is fair play and it seems that if government is going to regulate private business then it is only fair to have private business regulate government.

You see, the government does not like the idea of insurance companies raising rates to cover costs but has no problem raising taxes to cover its costs, many of which are unnecessary or wasteful. If we had reform that took away some of the things that cause insurance increases, many of which are the result of government rules, then the costs would go down.

Obama might be on to something. But instead of harassing insurance companies he needs to channel his energy toward government and its oppressive tax scheme.

Unfortunately he will not see this because he is interested in government involvement in all aspects of the private sector and our lives.

Big Dog

Gunline

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Obama Takes Limbaugh’s Advice

After Barack Obama won the election Rush Limbaugh gave him some advice on the economy. OK, actually Rush gave Obama a proposal which Obama ignored. Limbaugh said that we should cut the Capital Gains tax to zero for a period of time and cut the corporate income tax in half. Limbaugh also said that cutting those taxes would put more money in the pockets of Americans and businesses would have more money to hire and expand. Of course this was ignored by Democrats even though cutting taxes always increases revenue to the Treasury and stimulates the economy.

I know a number of liberals who do not believe we should cut taxes. In fact, many of them say we should pay more taxes (somehow liberals always want more taxes but find ways not to pay them – see Obama administration for examples).

It looks like Barack Obama has finally taken some of Rush Limbaugh’s advice. Obama, in an effort to stimulate job growth, is pushing to eliminate the Capital Gains tax on small business for a one year period. The cut should be more and include many others but this is a good first step.

A major part of his package is new incentives for small businesses, which account for two-thirds of the nation’s work force. He proposed a new tax cut for small businesses that hire in 2010 and an elimination for one year of the capital gains tax on profits from small-business investments. Breitbart

Obama wants to cut taxes to zero for one year in order to stimulate job growth. Listen up liberals, your leader has just told you that cutting taxes stimulates job growth.

This is not the first time a Democrat has mentioned cutting a tax to stimulate the economy or stimulate job growth and each time they say it they are admitting that conservatives especially Mr. Limbaugh are right. Saying it is one thing and doing it is another and they seldom carry through with the plan but they do admit, probably unknowingly, that the conservatives are correct.

This economy would be on the mend in a big way had Obama listened to Limbaugh in the first place. Cutting Capital Gains taxes to zero for a year would cause a massive influx of money into the economy where people would spend it. Cutting the corporate tax in half would leave companies with a lot of money to expand and hire.

And the government would get its cut because people who have more money buy things that are taxed. People who get a job pay taxes and the revenue to the Treasury would skyrocket.

I know Obama is only talking about cutting the tax for small businesses but that is better than the path he has been on.

It would have been better if he took all of Limbaugh’s advice but baby steps, a little at a time and we will get there. Once the economy picks up Obama will take the credit but he will have shown that tax cuts are a good thing.

If Obama can cut the Capital Gains taxes on small business the job numbers should improve and the economy should start to improve. But that won’t do it all.

So, here is the piece Limbaugh wrote so Obama won’t have to search around. Read it Barry and follow all of it.

Big Dog

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Enforcers At The IRS Harass $10 An Hour Worker

A hair stylist in Seattle who makes fewer than $20,000 a year was recently investigated by the IRS because the government organization claims that she does not make enough money to live where she does. According to the IRS, Rachel Porcaro, cannot possibly be living on her low wages and they have determined that she is not making enough to provide for her children so she is losing her earned income credit.

I am no fan of the EIC but it is legal and if she is entitled to it, she should get it. But the IRS is convinced that she makes too little and they believe she must have unclaimed income.

Porcaro lives with her parents and does not live a lavish lifestyle. The IRS spent tens of thousands of taxpayer dollars in order to get a little more than a thousand dollars from Porcaro. That is efficiency at its finest. To top it off, Porcaro and her family are out thousands of dollars because they racked up bills defending against the harassment.

Why is it that a guy like Tim Geithner can deliberately not pay his taxes and he does not get fined or put in jail but a $10 an hour worker is harassed by the IRS? The same is true for Charlie Rangel who is a tax cheat. Why does not the IRS spend more time going after real tax cheats (just look at the Obama administration or Congress for that matter) and leave hard working people alone.

Obviously if this woman or any other taxpayer is breaking the law then the IRS has a duty to check it out but people in this income pay NO taxes. Why harass them when there are people skirting the tax laws everyday?

We need to abolish the IRS and simplify the tax code so that everyone pays a piece of the bill and we need to eliminate things like the EIC that allows people who pay NO taxes to get money back. This is backdoor welfare.

But until we do just that, this woman and many more like her are living on what they make and filing taxes in accordance with the law.

H&R Block did her taxes so it is not like she cheated them. Besides, she pays no taxes so how could she cheat anyone?

As for her kids, neither she nor her parents can claim any EIC. She cannot claim her kids because the IRS says she can’t possibly be taking care of them.

And yet she is.

Government idiocy at its best.

Hey IRS, go pick on the tax cheats in government and leave the hard working folks who try to obey the laws alone.

Big Dog

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