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alstry (35.36)

Cities, Counties, and States NEED Cash....REALLY BAD!!!!!

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November 11, 2009 – Comments (4)

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.

http://www.nytimes.com/2009/11/10/nyregion/10taxes.html?_r=2&adxnnlx=1257973519-SlntAdwlPEohKYHNmu0zbQ&pagewanted=print

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?

 

4 Comments – Post Your Own

#1) On November 11, 2009 at 7:20 PM, Varchild2008 (85.38) wrote:

"payment obligations "

There's not enough money to meet payment obligations when the obligations are to sustain the lives of the poor indefinitely and the number of poor people grow as more people are taxed even more to keep funding the poor.

I absolutely detest saying something similar to John Edwards but there really are 2 Americas in America.  There are those who refuse to work for a living and allow themselves to be a burdon on society..... and those forced to pay for it all.

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#2) On November 11, 2009 at 7:38 PM, alstry (35.36) wrote:

Trust me, I understand your perspective and think I respect what you are intending.

I am not sure what you do for a living...but the only reason most Americans are/were working is because many Americans were borrowing incredible sums of money driving huge revenues and income through the system.....as a leveraged domestic consumer economy, if Americans are not borrowing, most Americans will have nothing to do under the current system.

The legacy of the behavior/system was the massive accumulation of debt,....... now that credit has been cut off, the debt is consuming declining revenues that otherwise would have gone to goods, services and jobs.

Right now lots of hard workers are losing jobs because money is evaporating.

It is not a value judgment, simply a fact no matter how hard you work....if the reason you work is for money.

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#3) On November 11, 2009 at 9:19 PM, LuckyStrike88 (< 20) wrote:

I think it is noteworthy that the 1st plank of the Communist Manifesto is.

1. Abolition of private property and the application of all rents of land to public purposes.

 

I don't know how anyone can, with any intellectual honesty, claim that they "own" their propoerty.  Even those that don't have a mortgage still pay property taxes and if you fail to comply you will be evicted from your property and face possible imprisonment and your propoerty will be sold. You lease it from the government.

 Explain this to me.

 My wife and I have no children we pay almost 4k a year in property taxes.  So why do we pay this when our children don't go to government schools (10th plank)?  Why is it, as well as the income tax, progressive?  If you sit back and think about it, it's really nothing more than.  

 "From each according to his ability, to each according to his need"

Now repeat after me.  We live in a free country.

 


None are more hopelessly enslaved than those who falsely believe they are free.
Johann Wolfgang von Goethe Report this comment
#4) On November 11, 2009 at 9:24 PM, dickseacup (66.94) wrote:

Winner. Thread over.

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