Cities, Counties, and States NEED Cash....REALLY BAD!!!!!
Desperate for cash amid the worst fiscal crisis in years, New York State is pursuing tax debtors more aggressively than ever before, doubling the number of cases it is investigating and seeking to collect from delinquents ranging from JPMorgan Chase to an out-of-business convenience store on the Bowery.
Since the start of 2008, the state has filed more than 340,000 tax “warrants,” public notices of delinquency that can make it harder to get loans or sell property and can lead to garnished wages or even forfeiture proceedings. By the end of this year the state’s Department of Taxation and Finance will have filed the largest number of warrants ever in a single year and settled about a million open cases, the most in state history.
States across the country, strapped by plummeting revenues, are undertaking similar efforts, backed by improved disclosure laws and new technologies that allow them to more easily find delinquents. In Illinois, officials have started a pilot program using Internal Revenue Service databases to uncover sophisticated tax-avoidance schemes that use trusts and partnerships to hide income. In Minnesota and Georgia, enforcement officials have stepped up so-called residency audits, combing property and voting records to find people who live in the state but claim residence elsewhere to avoid state taxes.
New York, experts say, has been at the forefront of such efforts, with over 1.2 million active tax cases, almost twice the average caseload it had in years past. Thanks to the crackdown, New York officials say, overall revenue from enforcement actions is up by 40 percent during the past six months, bringing in an extra $185 million.
Extra $185 million and still $3 Billion short????
Here is the problem folks....there is simply not enough money out there to meet payment obligations when banks cut off credit in an overleveraged credit dependent society. Both money supply and money velocity contract rapidly.
Most people can't see the big picture and fail to appreciate what is actually happening. Most simply think about themselves and their own position....because everyone else was always good enough in the past.
NOT ANYMORE!!!!! It is mathematically impossible for tens of millions of American families and business to meet monthly obligations and pay interest now that credit extension has been cut way back. I have raised an impossibility defense with a number of lawyers who promptly turn to deer in the headlights thinking about it....primarily because attorney's are trained to deal with issues on a case by case basis.
But when we are all on a sinking ship, it is the ship that matters whether we are in first class or steerage. Now the ship is sinking for both government and citizens.
It is mathematically impossible to payoff $50 trillion of debt and meet monthly obligations when revenues are collapsing due to bankers cutting off credit. Extension of credit is what drove the American economy and the revenues and income to America..
Soon, as tax receipts keep declining government will run out of money....just the annual spend of government exceeds to total savings in America. At that point, government may be forced to tax your assets or government will face solvency issues.......
At the end of the day, we all live in a very leveraged America.....and servicing debt is draining the income of citizens and government. The tensions are beginning to rise as zombulation gets closer.
As more and more of your fellow citizens go broke, ask yourself what happens when a politician is faced with the choice of taxing everything you have or giving up his salary?