May 7, 2010

Get Those Taxes in Early, or The Refund May Be Late

Justin Katz

Here's a telling turn of events:

The state has delayed the payment of thousands of Rhode Island income-tax refunds because of cash-flow problems.

The delays involve more than 65,000 individual income-tax refunds, as well as some refunds of the state business-corporations tax, that were processed and ready to be issued in April.

State officials decided to hold back those refunds, totaling about $39 million, and release them over time.

The delays were disclosed on the fourth page of a six-page state revenue report issued Thursday.

The justification for the move is at least understandable: The state delayed the filing deadline because of the flooding calamity, and since people who are getting money back file early, while people who owe money file late, the cash flow is out of balance.

The adjustment does highlight the central fact of Rhode Island governance, though: the state is run so poorly that we're not in a position to absorb unexpected difficulties without disrupting basic operations, like returning tax money to people from whom the state took too much in its interest-free loan from workers' paychecks.

Comments, although monitored, are not necessarily representative of the views Anchor Rising's contributors or approved by them. We reserve the right to delete or modify comments for any reason.

Strange what we get picky about. Taxes send contributors to this blog in a tizzy, but the recent rise in gas prices, the taxpaying consumer’s contribution to BP to help pay for its Gulf oil spill, has been unnoticed and unnoted at Anger Rising. It is, however, in keeping with the retrogressive philosophy espoused by people who see only tax dollars. Truly the left hand knows not what the right hand does.

Posted by: OldTimeLefty at May 7, 2010 12:34 PM

Justin, missed your blogging at the Tiverton FTM. Are you going to give us an update?

Posted by: TCC at May 8, 2010 4:19 PM

I guess OTL already got HIS tax refund.I hadda pay a few bucks so I'm outta this one.

Posted by: joe bernstein at May 8, 2010 5:02 PM