March 12, 2010 - So you've lost your job and perhaps your home. The last thing you probably need is to have your state tax authorities coming after you for money. But the states are having real financial difficulties of their own. While most of their problems are due to the overspending of politicians, it doesn't alter the fact that their incessant need for money is a real problem given the state of the economy. Furthermore, with upcoming elections in November, the last things that most state politicians want to do are raise taxes or cut services. Because of these facts, the several states are looking at aggressive measures to extract more tax money from their residents. In some cases, they are also considering delays in sending out tax refunds… until August. Essentially, this would mean that the states are getting interest free loans from tax payers.
Today, on Neil Cavuto's show - Your World - there was a short discussion about what some states are considering. Their plans include garnishments directly from your bank accounts and in the case of Nebraska, publishing the names of people who owe the state money.