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Citizens Loaning Government Billions in 2010?

Discussion in 'Politics, Elections & Legislation' started by jimrich60, Jan 9, 2010.

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  1. jimrich60

    jimrich60 Member

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    Most ,probably, do not know that California, last year, came up with a new scheme to incrase state revenues by simply increasing state withholdings by 10 percent, while not actually changing taxes. In effect, Californians are being forced to "loan" billions to government, money which they in theory would get back at tax filing time in 2011 but no interest or other return is included for this "loan". Seems like the Federal Goverment has now adopted this practice as well. What is happening is that in November 2009, the IRS very quietly published new withholding tables to employers. These new withholding rates increased the percentage of tax withholding, based on wage levels. I first noticed this in my annual military retired pay statements, where although we received no COLA or other increases for 2010, the amount withheld for federal taxes went up. Then I found this article on Breitbarts Big Government website:

    http://biggovernment.com/2010/01/06/dems-tinker-with-withholding-tax-tables-for-2010/

    This explains how the feds are increasing withholding rates to generate hundreds of billions of additional money for government in 2010. In effect, the Federal Government is forcing workers to make hundreds of billions in "no interest loans" to the government during 2010, which would then be "repaid" by the government at tax time in 2011. It may be hard for many to figure out just how much they are "loaning" the government this year, since wages for many change, etc and this normally changes withholding amounts as well. But if your wages remain stable from 2009 to 2010, you should easily see the differences. Just more "Hope and Change" I guess, or was that actually "Hope and Chains" that he was saying?

    Jim R
     
  2. wireguy

    wireguy TS Member

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    Gonna be interesting to see how this money gets repaid. If they had it they wouldn't need to borrow it. I bet they will run the printing presses (more like create electronic digits out of nothing) and repay it with money created from nothing that devalues existing fiat currency. The citizen loses twice. Once when he is forced to loan money interest free, again when he is repaid in devalued dollars. More of that "change".
     
  3. Chichay

    Chichay TS Supporters TS Supporters

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    You can adjust your W-2 to reflect the correct amount to be withheld from your paycheck. Don't let the government "force" you into an interest-free loan. Same goes for those "happy" to get an income tax refund after April 15th. Chichay
     
  4. crusha

    crusha TS Member

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    Well, if they take more out, they can give you more back! Hubba hubba.


    And let's see if they use the trick of delaying return checks again. That's a good one.
     
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