Interesting idea from radio caller... Starve the feds of funding...

[ponycar17]

A local talk show caller discussed his idea for punishing Congress on their decision to tackle health care legislation and 'cap and tax' a few weeks ago. His idea was a little late in the game but definitely interesting. He suggested that everyone who feels that The Congress is acting irresponsibly should raise their dependents on their W4 withholding forms to the maximum for several months to effectively starve the government of funding from taxation. There are penalties for doing this in the form of mandatory estimated tax payment in the year following 2 consecutive years of owing more than $400 in taxes I believe. I'm not sure on the correct number. Also, you WOULD have to pay all that is due in April or face the wrath of the ever-growing IRS, which has been hiring at breakneck speed in anticipation of resisters to a large tax increase.

Anyway, what do you think of this strategy? Would you participate? I'm not advocating the plan but definitely see the immediate impact it could potentially have.

[ponycar17]

Of course, the negative consequences to everyone would be that the feds would ignore the real cash intake and simply print money, causing inflation that would lead to USD devaluation.

[topper]

If the majority of americans that do NOT agree with the POTUS and his evil congress would just not file income tax, that would effectivly shut down the government until this mess is straightened out. What are they going to do, put millions of people in jail? Hardly. We need some form of non-violent protest to get our message to the government and do it quick. BTW, income tax was ruled illegal way back in the 1920's, but no one has enough money or gumption to take on the evil government. Most people disappear when they have a good case against the government.

[Hardballer]

Originally Posted by ponycar17

Of course, the negative consequences to everyone would be that the feds would ignore the real cash intake and simply print money, causing inflation that would lead to USD devaluation.

I think that is already being done.

[ponycar17]

What you say is true about not filing to some extent but not everyone pays, and there's the whole legal issue. Most people withhold too much and get refunds. Not filing would likely help the feds. Collaborating to reduce their take throughout the year would starve them and would likely result in little legal recourse under current law but I'm no expert. The only way to do this is by reducing your withholding throughout the year, starting as early as possible. Of course I don't advocate this but find it interesting to discuss.

[Marlin T]

As much as I like the idea of not sending the fed any money, I really think that it would not make much of a difference.

As you pointed out before Pony, the fed is printing money at a break neck pace as it is now. I do believe that they are following the Cloward Piven strategy, whether or not they even realize it.

Now over all when it comes to taxes, I do believe that if you take the money that you are going to owe, put it in a savings account, you are going to make money at the end of the year after you pay the balance.

I’m usually pretty close to owing no money and not expecting anything back either.

[Maximilian II]

You really want to starve the gov't of money? Quit working. Live off government programs. Gets 'em coming and going.
Unfortunately also furthers Socialist type programs.

[ponycar17]

I'm very surprised at the few participants in this discussion thus far. Consider this... You're running a gold mine and your largest customer decides that it is most cost efficient for them to pay you only once per year. You have to pay your staff to excavate and process gold regardless of what happens upstream. Being payed only once per year would be destructive to your business if not for small business loans used to pay your employees throughout the year. What if there aren't any small business loans? Well, your business crashes. This is primarily what would happen if the government were starved for funding through just one taxation cycle. With China reluctant to take on our debt the Government would either starve for money or arbitrarily print money. I say that this would work in practical application... I could be wrong.

[ponycar17]

Originally Posted by Marlin T

...I’m usually pretty close to owing no money and not expecting anything back either.

I do the same Marlin T. I take my wife and I's income at the beginning of the year and estimate our potential pay raises and potential tax liability. At the end of the year we owe a little but not much, after withholding. This next year, who in the heck knows who will owe what?.... After all, the Bush tax cuts expire and everything is up for scrutiny. We could lose the child tax credit of $1K per year for qualifying child. As a society we could lose the Earned Income Tax credit, although unlikely from the Democrat who needs to schmooze those folks. We could lose the exemptions we currently enjoy. We could lose the tax brackets that we've become accustomed to... We could lose the personal exemptions that we've become accustomed to under Bush tax policy....

In other words, we could be screwed royally...

[ponycar17]

Amazing... No responses on discussion of something that might actually work better than protest?...