Thursday, September 23, 2010

Useful Information for Under-taxed Individuals

Despite ample evidence (here, here, and here) that wealthier taxpayers already pay the bulk of U.S. taxes, a number of supposedly wealthy commentators and bloggers believe that they are under-taxed and should be forced to pay more taxes. I say, why wait for Congress to take action? If you truly believe that the government is the best and most-prudent investment of your hard-earned income, you can make additional voluntary contributions now.

1. Decide not to declare any deductions and not take any exemptions or credits on your federal income tax return. This will immediately boost your adjusted gross income (AGI) and increase the amount of taxes owed. For example, if you have a large mortgage on your home, do not take the deduction allowed on mortgage interest. Do not write off other taxes that you might have already paid. WARNING: Your accountant may question your sanity.

2. Give directly to the United States Government. Here's how, courtesy of the United States Treasury web site. Okay, in full disclosure, you are not actually paying additional income tax but you are helping to reduce the tremendous $13 TRILLION+ national debt, which reduces current and future interest payments paid by the government. Reducing interest payments frees those funds so that the government can spend on other programs.

How do you make a contribution to reduce the debt?

There are two ways for you to make a contribution to reduce the debt:
  1. You can make a contribution online either by credit card, checking or savings account at
  2. You can write a check payable to the Bureau of the Public Debt, and in the memo section, notate that it's a Gift to reduce the Debt Held by the Public. Mail your check to:
Attn Dept GBureau of the Public DebtP. O. Box 2188Parkersburg, WV 26106-2188
Alternatively, you can provide your money as a gift to the United States Government.

Gifts to the United States Government

How do I make a contribution to the U.S. government?
Citizens who wish to make a general donation to the U.S. government may send contributions to a specific account called "Gifts to the United States." This account was established in 1843 to accept gifts, such as bequests, from individuals wishing to express their patriotism to the United States. Money deposited into this account is for general use by the federal government and can be available for budget needs. These contributions are considered an unconditional gift to the government. Financial gifts can be made by check or money order payable to the United States Treasury and mailed to the address below.
Gifts to the United States
U.S. Department of the Treasury
Credit Accounting Branch
3700 East-West Highway, Room 622D
Hyattsville, MD 20782
Any tax-related questions regarding these contributions should be directed to the Internal Revenue ServiceExit the FMS Web site at (800) 829-1040.
If you do decide to donate or provide a gift to the United States Government, please let me know via the comment section or send me an E-mail. Any donation larger than $250 will receive a personal "Thank You!" from me, another average citizen. Also, please let me know if you would like your name added to the Honor Roll below.

[updated 3-AUGUST-2011]

The following individuals have contributed $250 or more to reduce the national debt and to help reduce the cost burden of the United States Government for all Americans. On behalf of all Americans, you have our thanks and gratitude!


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