Iowans for Tax Relief agrees with Mr. Norquist about federal IRS deadlines. A different approach, however, is needed in Iowa; we should keep the filing and payment deadlines in place for our state.
Our friend, Grover Norquist of Americans for Tax Reform, has done a great job of explaining an issue that may be brewing in Washington:
"The Treasury Department is considering moving tax payment and tax filing deadlines, according to recent media reports. While some fail to make a distinction between tax payments and tax filing, there is an important difference.
Delaying tax PAYMENT deadlines is a positive step that will help Americans receive liquidity in this economic downturn.
However, delaying tax FILING deadlines would be counterproductive to this goal as it would discourage people from filing, which would result in the government keeping tax refunds owed to millions of Americans...In any given year, almost three in four Americans receive a tax refund averaging $3,000. Despite this, many people wait until the last minute to file every year...Many of these individuals have not filed simply because they do not have to. Extending the tax filing deadline will therefore benefit the government, not taxpayers by extending the interest free loan that many individuals give the government from overpaying taxes throughout the year."
What about here in Iowa?
Iowans for Tax Relief agrees with Mr. Norquist about federal IRS deadlines. A different approach, however, is needed in Iowa; we should keep the filing and payment deadlines in place for our state.
While the federal government budget is filled with spending largess, our state is run much leaner. Besides, while the federal government can literally print money, not to mention that the feds aren't restrained by any requirement to actually balance their budget, Iowa is bound by law to be fiscally responsible. Cutting off such a large portion of the state's revenue could lead to many unintended consequences.
