I'm sure the rest of you were like me and were dreading the April 15th deadline for our federal taxes. The only people that weren't in a bad mood that day were probably the bean counters looking for all that money coming in. And...as good citizens I'm sure a vast majority just went along with the system and made sure all of our paperwork was in line and filed properly. Once more...the cycle continues...what if we were to "rock the boat" so to speak?
Let's look at a possible way to shake things up a bit. If you were to look at your standard deductions you fill out on your W-4...are you really following the correct guidelines? Do you have it set up to where they're pulling out more than what they're supposed to so you get a big return the following year? Or, are you setting them so high that you don't pay through the year but end up paying the next year? I just took a massive pay cut about a month ago, and unfortunately I'm in the middle of bankruptcy proceedings due to a home foreclosure and other things contributed to this economy. I just so happened to look at my current W-4 and realized that I "wasn't following their guidelines." They were taking out too much money. By changing my W-4 to the allowable deductions they say I can take out...it did make up a little bit of difference from the pay cut.
If they don't want to listen to us concerning the Fair Tax bill...I say let's play by "their rules." They say we're allowed to have certain exceptions...so let's make sure we're doing that correctly. Take a long hard look at that W-4 and don't be afraid to put those little 1's in the boxes at the right of the page. Be sure to save every single receipt and taxable deduction so when it comes time for filing...you're still getting something back. Only pay in what you're obligated to pay in, and be sure you take back everything you possibly can at the end of the year. Me, I don't have to worry about getting anything back for the next 5 years because whatever I would be getting back is going straight to the bankruptcy trustee so it really doesn't matter to me much....the less they get the better I feel.
If we can get people to start changing their deductions, someone's going to wake up and realize they're not getting in as much as they thought they were. Maybe this would trigger people to start looking at alternatives to this current tax system. The way I look at it...they're giving us allowable deductions...so use them. If you play your cards right...you'll end up breaking even...and if you have enough to itemize, you'll still be getting something back. Now, be honest...what is it that you really do with that tax refund check when you get it? If you're like pretty much everyone in this country you pay off some of those credit card bills and get them down to more reasonable levels. And what do you do throughout the year...that's right, those balances go right back up. Again...the cycle continues.
I'm all for the Fair Tax...and it looks like there's a couple of states that are pushing legislation through their systems as well. Hell...a few weeks ago there was huge media coverage that Texas wanted to secede from the Union! I don't know about you....but if that didn't wake someone up in Washington, I don't know what will. Until the Fair Tax bill starts to really gain some steam in Washington, let's use the current system to our advantage and keep as much of that money in our pockets as we can.