Posted on 01/09/2015 1:58:41 PM PST by Evil Slayer
BEGIN TRANSCRIPT
RUSH: Lots to do here on Open Line Friday, Rush Limbaugh. Determined to be in a good mood, folks. Determined to be happy. Determined to do everything I can to enjoy life. And if that makes some of you think I'm out of touch, so be it. I've been dealing with that complaint for 27 years. Over and over again I've heard that, "You're out of touch, Rush, you're losing touch with what it's like to really be in America." No, I'm not. Never have lost touch, never will lose touch. But it doesn't mean that you can't sit around and have fun now and then. You can't be mired in misery all the time.
There's so much. For example, there is how about free community college for everybody? Oh, yeah. And do you know now that community college, that's what stirs the drink that is America. Community college. That's where careers are made. Community college, the best kept secret in America now, Obama's gonna make it a freebie. The price tag for this is about 34, $35 billion, but it's gonna be free. The professors are not gonna work free, and the utilities are not gonna provide heat and air-conditioning for the buildings on the campi free, but it's gonna be free to you, except maybe if you are due a tax refund.
You may not know this yet, but if you traditionally or annually arrange your taxes so that you get a tax refund, it may come to an end this year, for two reasons. The New York Times says their funding is short, and they may not be able to fully complete every responsibility, and therefore refunds might be late this year. Folks, I'm not kidding here. Got it here in the Stack of Stuff. Your refund might not ever find its way to you. It might instead be taken. We warned everybody of this back during the days when Obamacare was being debated and shortly after it was signed. Many people will lose their tax refunds, they will essentially be seized by the IRS to cover health care mandated expenses via Obamacare. Not kidding.
Some of you may never see your tax refund. The IRS has the authority to seize it if you have not followed the law and either paid the fine or bought a policy or what have you. So in order to make sure there isn't a whole lot of anger about that, Obama has to do something. You're not gonna get your refund, well, he's gonna give you JC, though, junior college, community college free now. This is just a taste, just a taste of what's on tape today.
BREAK TRANSCRIPT
RUSH: I want to remind you, some of you might remember this, but I caught a lot of heat back in 2009 and 2010, and maybe into 2011, when I learned how the IRS was going to collect fines from people on Obamacare. You know, you pay a fine if you don't get an insurance policy. And it all relates to the individual mandate and the business mandate and all this sort of stuff and how you're gonna be dealt with if you don't sign up, don't go to an exchange, don't buy a policy from somewhere.
There's a schedule that people will pay fines. The fines are cheaper than policies the first couple years on purpose. It doesn't take long, though, that the fines end up being more expensive than the policies, but the fines being cheaper than the policy are designed to get people to pay the fines first if they don't want insurance. It's a psychological thing. And I remember telling people, the only way the IRS is empowered to collect the money is by seizing money from you via your tax return.
The IRS cannot send you a bill. Well, theoretically the IRS can do anything. But the way it was set up when Obamacare was first being debated and we were first learning about it was that if you were judged by the IRS to be in arrears when it came to the mandates of Obamacare, if you either owed a fine or if you had not spent enough on a policy or if you had not done enough to comply with the law, the way the IRS was, according to the law, empowered to get your money was to seize your refund.
Now, I don't expect too many people remember this, because it was three, four years ago, and it was during a time when we were being flooded with details about what Obamacare was. But I remember for those who were paying close attention back then, I caught heat, because the moment that I learned this I suggested that people make changes in their withholding so that they did not get a refund. If the IRS can only take money from you in the form of a fine for not having Obamacare or some other failure to comply, if they can only get money by seizing your refund, then don't do a refund. And you can do that by adjusting your withholding and have less money withheld.
I mean, the reason you have a big refund nine out of 10 times is because you are allowing too big a deduction from your pay every week or two weeks, however often you get paid. So the government gets your money, pays you no interest, they hold it for the year, and then you get a refund when you file your taxes that next April, and you think, "Wow, man, look at this, $1,500 refund, look," and you start bragging to everybody about how you screwed up the government and how you pulled one over on 'em. And you did no such thing.
I caught grief for suggesting all of this. I caught a lot of grief, people telling me, "You don't understand people's situations, Rush. People need those refunds. It's the only time in the year they ever have that much cash on hand at one time. And the economy needs that money, Rush, because that's how people go out and buy mufflers and refrigerators and big screens and so forth and so on." All of that I understand. I understand the allure of having a check for $800, $1,200, $2,000 in one lump. And I understand how you don't want to give that up.
But you are denying yourself disposable income during the year in order to have that big check. In effect, you're in an enforced savings plan at zero interest. And the bank once a year gives you the money back, at no interest. And that's the IRS and your tax refund. And if you have a refund and you haven't complied with Obamacare and they find out about it, your refund is where they're gonna collect. And it is being estimated already that a lot of people who are expecting a refund this year are not gonna get it for a host of reasons, and there's gonna be a lot of anger about this.
But there's not gonna be anything anybody can do 'cause it's the IRS. All they can do is get mad. So here comes Obama with free community college. You see how it works? Dear Leader is offering something in return in exchange for taking your money. He-he-he-he. And calling it free.
END TRANSCRIPT
The EITC is part of the refund that can be kept to pay the healthcare bill.
I believe so. So if one doesn’t pay their fine, they’d be charged the excessive penalty and interest that the IRS confiscates.
You would think so.
“I often have wondered whether it would be worthwhile to post something to teach people how to fill out W-4’s so as not to have excess withholding.”
Good luck with that!
I find mist don’t even have a clue what tax bracket they are in, nor the ability to understand it when explained to them.
If course, if you’re talking here on FR, they’d get it, no problem.
Thanks, unfortunately that is what I thought.
This stuff about the tax refund fraud psychology is finance 101 common sense. Man people are stupid.
I actually once asked to get full exemptions and the secretary gave me a dirty look at work, saying the IRS would go after me. To which I replied, not if I do my taxes in April and pays them.
I just do not understand why people are so stupid for the fraud, making us think that because we do not go along with the government stealing us, we could go to prison. This is absolutely unbelievable “pedophile” exploitation language.
What difference does that make? Obamacare rules are whatever Obama says they are.
and the penalty.
What penalty? Taxes are due at that time of the year, period. I did it before without problems. It is my business anyhow.
if the amount owed is over a certain amount as a percentage of the total taxes, then there is a penalty. The key is getting it so that you owe just under that percentage.
They may not be able to collect of fines and overpayments to insurers but they can apply payments in such a way that any shortfall is on income taxes, which would be subject to fines, penalties and levies.
No, you can't not pay tax all year and then just pay it all on April 15.
http://www.irs.gov/taxtopics/tc306.html
True. If you have no withholding, taxes are due each quarter.
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