State & Federal Taxes

[NeoStarO1]

I want to be clear that this thread is not open for heated debates but rather for informational purposes that is supported by facts

I have a question about state & Federal taxes. I understand the general principle behind collecting taxes in order to support local, state or federal programs. However majority of these programs seem not to have really any profitible returns like schools for example.

If they are collecting these taxes out of each paycheck and at the end of the year during tax season that person is intitled to either federal and/or state tax return. So they get a check.

Okay so now my question. If a persons taxes were distributed to support different programs and they are getting a check back at the end of the year, where does the state and federal treasurerers get the money to pay back people that qualify for a return if the money had already been distrubuted to different programs????

[Tarp2]

I'm no accountant, so I don't know which money pile they dig into .
But, I will give you my opinion on tax refunds. I never let that happen. I always write a check. I keep the interest all year instead of the government. There are limits and rules of course, however overpaying taxes is not wise IMO.

[osprey4]

It's not really that hard. The government has a pretty good idea each year how much returns will be, but they also get a big chunk of money coming in at the same time. Due to the turn over in cash in federal or state coffers, they have the money to handle it.

They don't actually spend every penny the minute it arrives from your employer.

[NeoStarO1]

How can the government know approximately how much returns will be each year?

I understand that they'd also be getting a fairly good sized chunk coming in from people who owe taxes. That is not what im questioning.

Im questioning where do they get the funds?

how do they turn over cash in state and federal coffers? What are the state and federal coffers? Are they investing the money somewhere where they are getting an interest gain on the money? Do they invest it in the stock market or what? I want to know how they are doing this? What are thier coffers?

I'll get ot my other questions latter once I get this one answered.
I really don't want opionions I want facts. Account funds or whatever. I have no idea wher to look it up. I can look up state to see where the money is going but not where it comes from for returns. Federal i can't even find where its going let alone where it comes from for returns.

[Ed_S]

If I'm reading you right, basically you're asking how can they repay money which was already spent?

Good question, actually. Can't document, but it would HAVE to come from current revenue.

Many people owe & pay on 4/15. I do, annually. Maybe they assume that payments will offset refunds?

[NeoStarO1]

yes that is correct Ed_S.
So if they have some sort of current revenue what is thier current revenue?

[Max50]

The government accounts for a fiscal year (mid year to mid year) as opposed to most businesses and individual taxpayers who pay based on a calendar year.

Revenues are accrued and expenses are deferred in a budget model. Many times the budget isn't balanced!!

In addition businesses and some taxpayers pay quarterly passed on an estimate of their yearly income to be paid for the calendar year on April 15. If there is an under payment there is a penalty plus interest. If there is over payment, the over payment is refunded without interest.

[thekingofpain]

Ahhh---taxes---I havnt paid since 1984 having no taxable income---alot of good info related can be had here: http://www.givemeliberty.org/

Try the mission statement to easily wade thru things:
http://www.givemeliberty.org/aboutus.htm

[NeoStarO1]

I understand that revenues are accured and expenses are deferred however I want to know what is thier source for revenues other than depending on the taxpayers.

So are you saying that business take up a bulk of the revenue generated to pay back to individuals? To me that doesn't make sense because some business get a return rather than having to pay.

What is thier budget model? What is it based on? I want to know what sources do they use or what type of business do they use to generate the revenue?

[NeoStarO1]

Interesting Links TKOP, i'll need time to wade through that stuffs and will post back at a later time.

its bringing up several more questions now. Questions they been asking. like is it legal? oh lovely! Looky at what I got myself into here. im a reading thanks TKOP im a reading now.