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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