It’s Called a Refund…Revisited by T. Edwin Perry
In April of 2008, I posted on my MySpace.com page a blog about the Socialized Entitlements that have been incorporated in the IRS Tax filings we all have to complete each year. What follows is a reprint of that posting, followed by an update of What’s New for 2010!
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April 2008
It amazes me just how misunderstood the whole tax filing process really is. I mean, how difficult is this word: REFUND?
Merriam-Webster’s Dictionary defines it as 1 : to give or put back 2 : to return (money) in restitution, repayment, or balancing of accounts.
In other words, if you don’t pay in, you have nothing to get back; however, I’ve had people come in to do their taxes that have earned $50,000, only paid in about $1,000 for the year, and are surprised to owe at the end of the process.
Look, taxes suck. We all have to pay them, and the balancing act of our current tax code is unfair and unrealistic. It puts the burden of our Nation’s support on the shoulders of the people who are barely scraping by while people who primarily get paid “under the table” benefit from “Earned Income Credits” and other credits that add to their often meager income tax withholding.
Do I sound jealous? Damn straight! The problem is and always has been that the basis of a floating, layered and tiered tax basis system is that those who apply themselves and work toward success and independence are punished, while those who choose the status quo reap the benefits.
Our Founding Fathers waged a war to be free of this type of unfair taxation from the English Crown only for us to place ourselves into the EXACT SAME POSITION by our own government. The only fair tax is a FLAT TAX, where everyone pays the same percentage, but no one in government will ever approve such a thing. Why? Because they know that our current system makes the common person a slave to that system, and that gives the Government POWER!
This isn’t anarchy; it’s equality. If you earn a dollar, a percentage goes to government. Period. I don’t care if it is only one dollar, if the tax rate is 10%, a dime goes to the government. The truth is that the tax rate would be closer to 4% if everyone contributed. We’d have the same budget for all of the social support programs, military defense and legitimate spending, but we’d eliminate the need for all of the pork social spending crap that we fund each and every year.
But in the meantime, if we have to work in this system, just get it through your heads: Withhold enough to cover your taxes, and you won’t have to FREAK OUT in April when you file your Return.
One more thing: It is called a TAX RETURN because you are supposed to have paid enough into the system so that the IRS has something to RETURN TO YOU. Tell your friends, and I’ll be glad to do their taxes for them…for a price. 
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New for 2010!
Oh, our Government has been busy, and don’t think for a moment that I haven’t noticed it. First, let’s talk about the Earned Income Credit.
The Earned Income Credit is based upon your claimed income (ie: what’s on your W-2’s or 1099 Income Statements) and the number of “Qualified Dependents” that you support in your household. If you’re single and have no kids, your income has to be VERY, VERY LOW to qualify; however, squeeze out a kid or two, and BAM!: you’re in the money! All you have to do is earn about $16,400 and have kids, and you get credits galore to add to whatever you had withheld. How much, you ask? The answer is $3,043 with one kid and $5,028 with two! (That’s almost 1/3 of the annual income, people!) Of course, for the 2007 & 2008 filing years, you could only qualify credits on two children. For the 2009 filing (that’s this year, folks), you can claim up to three. What does that do? Well, with three kids, that same example will garner you a total of $5,657! Add a husband or wife to that equation and the income can go all the way up to $21,450 to get that maximum credit!
Now, I know what you’re thinking: “Geez, Todd: That’s not a lot of income to start off with. Why don’t you want them to have a little money? Shouldn’t we be helping them?” Let me answer that question with this perspective: “Who told them to have three kids?” Not to sound evil or anything, but condoms are much cheaper. And, odds are good at this income level that they are already being subsidized by State Welfare Programs, which are not taxable! Add to the fact that there are plenty of people who earn a living “Under the Table” to avoid reporting that income and only report the income that will generate the credits, and you have a real problem. Now, instead of supporting the people that really need it, we’re supporting the people who figure out how best to game the system! (By the way: It’s called “Tax Fraud” when you do it, and it carries some pretty serious penalties if you get caught. I don’t recommend it.)
And let’s talk about “Making Work Pay.” Remember in 2008 when tax filers could qualify for up to $400 single, or $800 married, so long as you earned less than $75,000 or $150,000, married? Let’s do that again, only instead of having it issued separately, let’s roll it all into the tax return!
Look, folks, it’s the same song with a different name. All of the people who were complaining about the Bush Stimulus Plan from 2008 are now embracing the same basic plan as part of the tax return, and with all the out-of-control spending by Congress, I have serious doubts that spending MORE MONEY that we DON’T HAVE is a great way to STIMULATE the economy.
And the name: Come on! “Making Work Pay?!” If you really want to “Make Work Pay,” stop taking the “Pay” away in the first place!! While this program may seem like a great idea, and, I’ll be honest, I’ll be taking the credit when I file my taxes just like everyone else, why can’t we just stop the robbing from Peter to pay Paul to “give back” to Peter mentality of our Government and just cut out the middle man? Just cut the tax rates, apply them equally to everyone and let people keep their money year round!
Now, wouldn’t that make more sense?!
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