September 23, 2018

David Paterson Not Unpopular Enough, Considers Refund Delay

Okay, so New York is in a dire fiscal situation and David Paterson is pulling out all the stops. Last week, he started kicking the idea around of temporarily freezing New York State tax refunds for individuals and businesses until a state budget is in place.

Naturally, the Governor is putting this on the New York State legislature saying that if they do not ‘act, and close this deficit with real and recurring deficit reductions, not made-up, phony revenue enhancers that don’t really exist’ then the state could go bankrupt. Don’t blame him, New Yorkers! He’s trying to fix this damn mess.


According to a report from WRVO, the state would freeze $500 million in taxpayer refunds and $200 million in business refunds to April 1st. Are people really getting their tax returns filed that quickly? Is there some kind of recessionary trend that shows that tax returns are filed more quickly during bad economies? Nothing is official yet so don’t worry but sounds like they’re running out of ideas up there.

Regardless of the suggestion, Paterson’s critics are not down for this, as Assembly Minority leader Brian Kolb called the withholding tax refunds “an absurd and crazy idea.”

Since “absurd and crazy” seems to be par for the course in Albany, we can’t really say that this is the worst idea David Paterson has ever had. He’s talking to Eliot Spitzer again, isn’t he?

Gov. Paterson Comments on Withholding Tax Refunds [WRVO via Web CPA]

Okay, so New York is in a dire fiscal situation and David Paterson is pulling out all the stops. Last week, he started kicking the idea around of temporarily freezing New York State tax refunds for individuals and businesses until a state budget is in place.

Naturally, the Governor is putting this on the New York State legislature saying that if they do not ‘act, and close this deficit with real and recurring deficit reductions, not made-up, phony revenue enhancers that don’t really exist’ then the state could go bankrupt. Don’t blame him, New Yorkers! He’s trying to fix this damn mess.


According to a report from WRVO, the state would freeze $500 million in taxpayer refunds and $200 million in business refunds to April 1st. Are people really getting their tax returns filed that quickly? Is there some kind of recessionary trend that shows that tax returns are filed more quickly during bad economies? Nothing is official yet so don’t worry but sounds like they’re running out of ideas up there.

Regardless of the suggestion, Paterson’s critics are not down for this, as Assembly Minority leader Brian Kolb called the withholding tax refunds “an absurd and crazy idea.”

Since “absurd and crazy” seems to be par for the course in Albany, we can’t really say that this is the worst idea David Paterson has ever had. He’s talking to Eliot Spitzer again, isn’t he?

Gov. Paterson Comments on Withholding Tax Refunds [WRVO via Web CPA]

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Wanted: New Political Rhetoric to Pander to the Populist Masses

taxes_protest.jpgWealthy taxpayers now have some legit data that allows them to give the finger to all the rabid populist outrage that’s been going around. According to the most recent data provided by the IRS, the top 1% of taxpayers pay more taxes than the bottom 95%. The wealthiest 1% picks up 40.4% of the tax bill while the bottom 95% gets 39.4%.

This amounts to pretty inconvenient data for lots of Democrats politicians who have been screaming for years that the wealthiest Americans need to pay more taxes.

Tax Burden of Top 1% Now Exceeds That of Bottom 95% [Tax Policy Blog via TaxProf Blog]

Barney Frank Doesn’t Legislate Accounting, He Only ‘Exerts Pressure’

bfrank.pngAs you may know, the mere thought of Congress legislating accounting rules makes us nauseous to the point of passing out. Barney Frank, in an attempt to alleviate this common malady among accountants, has been quoted by Web CPA saying that “We will never legislate accounting while I’m chairman [of the Financial Services Committee]”.


According to the piece, Barn says that when he, and the rest of the committee, whipped Bob Herz, FASB Chairman, into submission over changes in mark-to-market rules, this was not legislating, this was “exerting pressure”.

Depending on who you ask (ahem, Hank Paulson), exerting pressure could easily be confused with “threatening” and threatening is clearly how legislation gets done in this country, whether it’s got a signature on it or not. So call it what you like, Barney-boy, we’re on to your doublespeak .

Barney Frank: ‘We Will Never Legislate Accounting’ [Web CPA]