I cannot divulge the individual who showed me this 200 page document. As you know, I am all about secrets and anonymity here and everywhere. But I did see this initiative and I crapped my pants. If this were insider trading, I would be heading to jail now. Let me just say the cogs are in motion to head this off before it is implemented.
When you do your taxes, you attach your SSAN to that document. At times, taxpayers even have refunds directly deposited to their bank accounts. Do you remember when the government was trying to find a way to take over 401K’s? That idea didn’t die. This document (which I could neither copy nor show anyone. Matter of fact, I had to read it in the presence of the individual) was from the Treasury Dept with involvement from both the IRS and Justice. Why Justice I am not sure but the bottom line is a new tax.
The tax is called a “holding tax” and deals with individual’s monies in financial institutions and 401k’s wherever they reside. To be initiated around the April 15th timeframe, a tax is immediately levied on the dollar amount of any holdings at a 3% rate. That money immediately goes into a government “holding” account (extracted from your account) where it draws interest for the government. A lien is also put on your account (and any new established accounts) so that taking monies out below what taxes will be owed are stayed (which means you cannot clear out your account). That 3% tax will also be levied on your tax returns. After the initial tax and withdrawal from your accounts, every quarter there will be a 3% tax on those accounts done by ADB (I assume this is “average daily balance”) figures.
For example: you have 1,000 dollars in your bank account=30 to the gov’t. Small potatoes? 10,000 in your savings=300 to the gov’t. Now we’re picking up steam. 100,000 in your 401K=3,000 to the gov’t. No small potatoes there. And this will happen EVERY QUARTER!
Now there was much of this I couldn’t understand but the rational was to shore up “entitlement” programs-including the ACA-to keep them solvent and stave off budgetary shortfalls. Are you kidding me? It is a perpetuating tax if I read this correctly, with no sunset. I guess we don’t have to worry about estate tax much going forward. There won’t be anything left. I don’t know how they can get away with this but maybe that is why the Justice Dept is involved. And we already know that the ACA was Constitutional because it was a tax. I’m sure someone will take this to court but by the time it gets resolved (what, 2 years or more?), can you imagine the pile of money the government will have……all collecting interest for them? I don’t know who you could call to complain because it is being kept close to the breast. All I can do is what I already started; closing accounts. This sucks. ANY PERCEPTION RELYING IN LOGIC FINDS ONE ONEROUS LAW! Sheesh.