Friday, February 20, 2009

That Giant Sucking Sound

You hear it? So do I. The sound of an ungodly amount of money flowing out of the U.S. Treasury to the taxpayers in the form of refunds. Just imagine. All those net operating loss deductions, capital gain losses, all those dried up corporate taxes... Ugh, our friends in the Federal Government might be the last to join the party, but it seems they are going to be the ones hit hardest.

Last month the only industries that did not take spiraling downturns for the worse were Education and Medical, both service industries (meaning they do not drive the economy) and both heavily subsidized by a government, which will soon be flat broke.

Promises must be kept, and this latest administration has made a lot of them. Expect a perfect storm for this tax season. Employees of the IRS will be instructed to be more aggressive than ever, while their adversaries on the other side will be no less passive. When it is all over, politicos who have promised the moon will be leaning heavy on the alternative minimum tax (newly revamped for pretty much everyone), while Evil Genius Mitch Romney sits on the sidelines, quietly amassing an army of Reagan democrats.

Man, even the Middle Ages weren't this entertaining.