Friday, 22 March 2013

The Little Bill

The Republicans have worked up a bill in the House...which basically says if you owe back taxes, and you have a lien now on your or your assets, and you work for the US government....then we want to terminate you.  And if you apply for a government job....we want you to be disqualified.

The numbers?  312k employees fall into this lien category.  There roughly three billion dollars involved in the amount owed.

Chances of passing the Senate?  I'd give it less than twenty percent chance.  The Democrats don't appear to be interested.

The problem?  A bunch of guys are doing a lousy job, with their tax consultant, in estimating the monthly amounts to deduct.  They sit in shock after the accountant has added up the numbers, and they are anywhere from a thousand short, to forty thousand short.

How you get into such a mess?  Well....some guys did contractor work in Afghanistan and then got into a government job.  The overseas work is $82k free of taxes, but if they paid you $175k for twelve months of'd be a big mess if you did ten months in one year, and then two months in the next.  The government did a little game of changing the rules back several years ago.  The deal worked out great for the government in getting more taxes, but most guys really didn't structure themselves to pay less taxes.  No one wanted to pay some tax consultant $1,500 to manage their money.

I'm guessing the numbers will only increase in 2013, and this whole bill deal will come back in 2014 (an election year).  It might pass then, and you'd watch a bunch of guys run off to banks to beg for loans of $ pay IRS immediately or get laid off.

That three billion owed?  It's simply going to grow....if you ask me.  By 2016, it could be eight billion owed by government employees.

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