Lots of folks I speak to like to overpay their federal and state taxes through the year. That way, come April 15th, they get a tax refund from Uncle Sam and their state capitol.
Now comes a good reason NOT to pre-pay those taxes. California is now issuing IOU's to pay for, among other things, tax refunds. Those receiving these IOU's might get a small window in time to cash out these IOU's at some California banks. However, with California's debt woes, this might not last long.
I wonder if California residents will overpay their state taxes for 2009?.
-Colonel Steve
That is so scary! (And totally something I had never thought of.) My husband and I always "prepay" our taxes to make sure we get a refund, but we also live in a state that's almost as bad-off as California!
This is just one more reminder that the only real way to keep our economy strong is not by raising taxes, but by keeping taxes low, fair and simple. I've been looking for a way to take action and contact our legislators and sign petitions and found some good policy the U.S. Chamber of Commerce backs (here).
I don't have a lot of money (especially if they keep bumping up the tax burden) or time, but I figure this will help other people do good.
Posted by: janetbrown | July 07, 2009 at 01:28 PM