The hits keep on coming.
“This tax assessment by the Obama Administration is an unprecedented
attempt to destroy the balance of authority between the federal
government and the states,” said Attorney General DeWine. “The $5.3
million Ohio is being taxed is money that could be used for education,
public safety, and roads and bridges. The states are not the federal
government’s tax collectors, and the Obama Administration should refund
these illegal taxes immediately.”
An interesting problem. The Federal Government can levy taxes on citizens as provided by the constitution and ratified by the SCOTUS.
Can the Federal Government levy taxes on a state or local government?
Is it time for another waiver?
As far as I ever knew was that the Federal Government could reach into state tax refunds and sieze them, but that is a direct garnishment against an individual and the resolution of that siezure would be between the IRS and the taxpayer... but with our current president and his agents of many agencies, anything is possible and as with the ACA problem... a court that looks to political winds is likely to surprise... After all, Obama's recent ratings have gotten a bump.
ReplyDeleteThe IRS can file with the state to lien a state tax refund. The state must agree and release the funds to the IRS.
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