Governmental Creative AccountingSubmitted by tpreitzel on Mon, 04/09/2012 - 17:03
Since I'm a new Montana resident, 2011 is my first year for paying income taxes to the state. I was a Wyoming resident prior to becoming a Montanan. Wyoming doesn't have an income tax. Montana does have an income tax, but no sales tax. I'm also a retiree from the US military so I don't have withholding for state taxes since none was necessary for Wyoming.
In late December of 2011, the government unilaterally decided to pay retirees for the month of January 2012 a bit early so 13 payments were made to retirees for the 2011 tax year. Hence, our taxes are based on 13 months instead of 12. Consequently, I was thrown into the highest tax bracket for the state of Montana as a result of the federal government's creative accounting. I talked to DFAS which indicated that the tax year for 2012 will still consist of 12 months instead of 11 so I GUESS that the federal government plans to continue their little scheme of distributing TWO payments in the month of December, one near the beginning of the month and one near the end of the month. We'll see.
Regardless, the result remains significantly higher taxes at both the federal AND state levels because of this fraudulent scheme. We, the people, really shouldn't expect anything less from our blatantly corrupt federal government. It's time for a revolution.
As a side note, I fully expect my representatives at both the federal AND state level (Montana) to work to PASS legislation stopping this little fraudulent scheme AND refunding my taxes dollars OVER paid for the 2011 tax year to both federal AND state governments with INTEREST.