The Predatory State of California

By hllnwlz   Follow   Thu, 22 Mar 2012, 4:46am PDT   1,107 views   4 comments   Watch (1)   Share   Quote   Permalink   Like   Dislike

On March 14, [R.T.] received a letter from the California Franchise Tax Board (the agency that collects income taxes) claiming that he owed $1,343 for the tax year 2006. This was the first notification he'd ever received of this claim. This was an interesting claim given that R.T.:

-- Did not reside in California in 2006

-- Did not file a State income tax return in California in 2006

-- Did not have any outstanding tax issues with California in 2006

-- Did no business in California in 2006

-- Owned no property in California in 2006

The number $1,343 is also interesting, as R.T.'s total Federal tax liability in 2006 was $650. Since the top income tax rate in California is about 9%, and that only kicks in at relatively high income levels above $100,000 annually, then it's difficult to see how anyone could owe double their Federal tax in California state tax.

But the truly interesting part of the story is that the state took $1,343 out of R.T.'s Wells Fargo bank account on March 2, prior to notifying him of the claim. Wells Fargo charged R.T. $100 for handling the removal of his $1,343.

Comments 1-4 of 4     Last »

Honest Abe   befriend   ignore   Fri, 23 Mar 2012, 2:01pm PDT   Share   Quote   Like (1)   Dislike (1)     Comment 1

Who was it who said " Government big enough to give you everything you want is big enough to take everything you have"?

Big government is not your friend. Limited, constitutional government is managable.

SFace   befriend   ignore   Sat, 24 Mar 2012, 3:53am PDT   Share   Quote   Like (1)   Dislike     Comment 2

Fabricated story.

elliemae   befriend   ignore   Sun, 25 Mar 2012, 2:48am PDT   Share   Quote   Like (1)   Dislike     Comment 3

SFace says

Fabricated story

Why would you say this? Oh, yea - because the story itself says:

charles hugh smith says

I do not have copies of the correspondence so I cannot verify this sequence of events, but I have corresponded with R.T. for many years and have found him to be a credible witness to national events. While some might claim he invented this story of state theft out of whole cloth, there is no basis in our years of correspondence to support that claim.

This one time, in band camp, my cousin's best friend's sister's boyfriend had nearly the same thing happen to him. I blame obama.

SFace   befriend   ignore   Mon, 26 Mar 2012, 2:39am PDT   Share   Quote   Like   Dislike     Comment 4

Anyone who deals with these things know that the US governments, including California, does not take money from bank accounts, ever. They turn it over to collection, they put liens on your property, garnish your wages or even freeze known accounts with a court order. Taking money is not among them! So if the author makes such claims, I do expect tangible evidence.

In any case, CA tax can exceed federal tax (As federal have tax credits like Earned income tax, Child care, higher education, energy credits that California don't and the tax bracket does not parralel). But that is besides the point. Simply, if CA indeed "take money" as they claimed, chances are all kinds of penalties, collection fees are slapped on top of the principle. You really think that if CA goes in and take $1,372, it is simply principle only? The author is either intentionally misleading or have no education.

That's why I believe this is a fabricated story. Take it for what it is worth. Don't appreciate BS headnotes.

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