I think you will find this interesting
If you don't pay it, it will just accrue penalties and interest.
It's only a matter of time before Soetoro unilaterally decides The IRS can attach your wages.
Time to update those W4’s.
Rush is probably wrong on the level of accrued penalty. I doubt the IRS interest rate on uncollected taxes is 1%. I just googled “irs rate on overdue tax” and found that, in addition to any late penalties, the interest itself is “3% over the short-term Federal rate”, whatever that is taken to be by law.
This is a “good thing”. The feedback loop on this behavior will be that more people will up their withholding.
Starve the beast.
I met my wife this way. She came up to me at work to tell me I can’t claim 13 dependents. I told her that I knew it and when the IRS sends me a letter I’ll correct my dependents.
I worked as a contract designer and didn’t work the entire year, but they were withholding as if I did.
As I said on another thread, VAT here we come.
What I find interesting is that in effect the Government is using your money for a year for free.
Now: If everyone corrects their W-4 that is money the Government does not have to spend, and they will have to borrow more for that year increasing the debt.
I am sure the Government does not keep that money in a lockbox but spends it.
Of course I also expect them to go against the law and find a way to make us pay penalties .
I hope Rush gets straightened out on this.
What he says is true in the very beginning, yet even without any new laws, the penalty/tax will be captured by the IRS sooner or later.
This is because as soon as other money is owed the IRS, the penalty amount is fair game, as the penalty has become commingled.
For example, last year I got an IRS notice saying I owed $13.13. If I had also owed a penalty, and ignored the notice, eventually I would get the 20% withholding on bank account withdrawals, etc., or other means to recover the whole amount owed, including the penalty.
A knowledgeable FReeper pointed this out the other day (sorry, I forgot who).
As reported and discussed on FR months ago