2007/04/18

Is it midnight yet? Time to protest the war!

As the federal tax filing deadline passes, it seems like an appropriate time to discuss how to really screw with the federal government. Why? Well one blog that I read questioned if it was even possible these days to mount an effective protest against Bu$hCo. The claim being that civil disobedience no longer has any effect on our current crop of GOP megalomaniacs.

So...on tax day, you might think that I'd advocate refusing to paying one's taxes--perhaps join the war tax resisters movement. But no...the penalty for refusing to pay up has gotten kind of stiff, $5000.00 now, up from just $500.00 a year ago So I'm going to make another suggestion...

If every pissed-off W2 wage earner, on the same day, submits a new W-4 listing 100 allowances, their federal withholding will be effectively reduced to zero for the remainder of the year. Each protester should then invest the money saved. Finally, in January of the next year, protesters should each make one "quarterly" payment that covers their tax burden and use any capital gains to cover any penalties.

Though claiming excessive allowances is not illegal--some taxpayers need to do it to get their withholding set correctly--it's also not exactly legal. Any amount over 9 gets reviewed by the IRS, anyway. But the steep, temporary drop in revenue will throw the feds into a tizzy. Even if all that happens is that the IRS has to review 50,000,000 or so W-4s, it might still be worth it.

13 Comments:

Since the Democrats are going to back down on funding the war, someone's gotta do something.
That's an idea worthy of a blogswarm. Is it too late though? I did my taxes all ready, and so have most of my peeps.
oy, I really wrote "all ready" s/b "already". Duh!
Lew... I know, I know. Pisses me off. Spineless rotten excuses for legislators.

SA... Not too late. The beauty you should sometime after you pay your taxes. The date should be coordinated, and it should change each year. Keep the feds on their toes.
I'm starting to hear flights of angels singing me to my final repose...

I think they are singing "Oh, Canada"
You are very timely in pointing this out, Kvatch. People who get refunds are doing something wrong. I've been advocating for yrs to claim many many dependents. It's so simple, just go in & request a new W-4 from your emp'er. If they question you, say your personal situation has changed. Dependents do not equal spouse & kids, they are merely a way of catagorizing your withholding. Claiming many depdendents will reduce FIT withholding considerably. Then just pay the diff as quarterly taxes. As you say, invest the diff & keep the earnings yourself. The IRS cannot charge you penalty or interest on underwithholding if your quarterly pymts are each about 25% of your previous yrs total FIT. If you need the IRS to hold your own money all year @ no interest just so you can get a "refund", you might also need a refresher course on dumb investments. An added bonus is your take on an effective protest, because even paying quarterly keeps the funds out of govt hands for months. Brilliant! ~~ D.K.
What a brilliant suggestion. Do you think it would really reduce spending on the war though? I'd hate to see Bush cut off my mother's social security check just because revenues run short.
Aaron... Oh sure, dump on us from a state that is just a hop, a skip, and a jump from our friend to the north. :-)

D.K... Very well put. Quarterlies are the way to go for most everybody. Never give the government money you don't have to, but if we all took your suggestion at once...say 30M to 50M of us, that would certainly give the feds something to worry about, right?

Kathy... I guess it's not about actually forcing them to cut off funds--more about driving home the point that, "you can ignore us at your peril, but here's a way we can fight back and really hurt you."

I don't think they'll actually cut social-security. Bu$hCo fears the AARP more than they fear liberals.
I for one use to be one of those who would pay extra to get a refund back every year. The reason being that I really wasn't in a position to save anything and that money was always needed each year.

However, I got so pissed off I finally changed my W4 last year and refused to let them have that extra money interest free.

I just filed my taxes and because I got lucky on the Lottery for a few bucks ended up owing a little more than I would have. I still however got a small refund. So I have a question.

How does one make a quarterly payment and how does one determine what that payment amount should be?

Does one calculate what there yearly tax liability is and than divide it by four and how do you make that payment if that is the correct way to do it?

God Bless.
AnonP... You've got it exactly right. Calculate your yearly tax liability--if you're not sure how, the IRS actually has an excellent calculator for it--and then divide it by four.

But seriously...rather than trying to angle for a refund, keep back...say...8% of your estimated tax liability, invest it, and then pay it back to the government at tax time the next year. As long as your amount owed is less than 10% of your payment...no penalty.
So if I understand you correctly I would file a quarterly payment on a specific form.

If I paid a quarter payment as it would be the divided amount for that quarter and I have it in a bank up too that time I would still be making interest on it anyway.

Then when I file my yearly tax return I would in fact pay the last quarter payment or I would pay that before I file my tax return?
AnonP...you've got it exactly correct. The first quarter's payment is filed in April, the second payment in early July, and so on. The last quarterly payment is payed in January of the following year, before you file.

You don't pay the last payment with your taxes because you need to report that your within 10% of your total tax burden in order to avoid penalties, and the payment on your taxes doesn't count.
Sheer unmitigated brilliance!

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