The American W-4 Party
Brad Warbiany at The Liberty Papers took note of my post about the “tea parties” and “going Galt”, specifically this passage:
I’d be more impressed if they fired a shot across the bow and coordinated a national day for cranking up their withholding allowances, just as high as they can. They’re planning their next party on Tax Day, right? One might think they’d be interested in ceasing to lend their earnings interest-free to the government. They might take some satisfaction in doing something that actually shows up on the government’s ledger.
Not knowing any accountants or tax professionals, I didn’t know just how far you could take that. But Brad decided it was worthwhile to find out. He did the legwork, consulted a tax preparer, and wrote up simple instructions for pushing it as far as you can without having to worry about incurring fees or other penalties.
And he has some suggestions for Tax Day:
So here’s my suggestion. April 15th, go to your HR department and change your W-4 claimed exemptions. Go with the maximum exemptions that you calculate will keep you from over-withholding, but small enough to avoid penalties. Budget (save or invest) the difference, so that you can pay the necessary tax next April, and don’t dare postmark the check to them before April 14, 2010.
It’s not a big difference. But if enough people do this, it will be big enough to be noticed. The federal government is expecting to spend your money as soon as it comes in; they’re not expecting to wait until next April to get your money. In fact, if they have to wait, they’re likely to get angry. That’s more money they have to borrow today. That’s more of a functional deficit on their books. In short, if you want to get noticed, a far more effective way than getting some friends together for a group protest is to hit them where it hurts: the balance sheet.
Fellow Americans, it’s time to stop being doormats. If you really want to show the government that you’re angry, it’s far better to show them than to tell them.
Tell your family, tell your friends, tell your blog readers, tell your coworkers. April 15th is the American W-4 Party.
For the full instructions, read the whole thing.
I like it. I especially like it because of the clarity of the message. If you email this around to all your relatives and peers, or post it on your blog for your readers, you’re not asking them to embrace the prisons or fire anyone that they employ. They don’t even have to take the day off of work, which should be a relief to anyone who needs the work to support themselves and their families.
For the price of filling out a W-4 form and turning it in on a Wednesday, they can keep more of their money out of the government’s hands for the next year. They can invest or save it, saying effectively, “I trust that I can handle my money better than the government would.”
It’s not a revolt. It’s just telling the government in terms they understand that we’re paying attention and we don’t want to lend them our wealth if they’re going to treat it like they have been lately. It’s a reminder of where their power comes from. And the more people who participate, the clearer the message.
36 days ’til April 15. In the age of social networking, I wonder how many people could get involved in this?