Ohio legislator wants tax refunds on debit cards

An Ohio legislator thinks the state should offer taxpayers the option of getting their Ohio refunds on prepaid debit cards.
Associated Press
Nov 12, 2012

 

State Sen. Eric Kearney says his proposal could save the state money and benefit low-income residents who don't have bank accounts. The Cincinnati Democrat says the option would give them a safe and easy way to get their refunds, avoiding check-cashing fees.

A federal survey found that about 414,000 Ohio households didn't have a checking or savings account last year.

The Dayton Daily News reports some officials are concerned that the program's costs would outweigh its benefits. A U.S. Treasury pilot program was halted after only a small number of taxpayers chose to participate.

Ohioans currently can get refunds by mailed checks or direct deposits into their accounts.

 

Comments

PS

Just out of curiosity, why wouldn't "low-income residents" have bank accounts?

Unassumer

No money to put in the bank.

reporter54

Some people are poor and have no understanding or trust of banking. Some are uneducated; some prefer to pay in cash. There could be lots of reasons but I don't like the debit card for refunds or payroll as there are hidden charges, like every time you use it at Walmart, you're charged .50 for the transaction, even though they tell you that it's free to use at stores, etc. It's not. It might save the state money to do this but not the consumer, but isn't that always the way?

samiam

It's also another way for big brother government to track what you are buying and where. Thanks, but no thanks.

samiam

duplicate posting...sorry

Factitious

Terrible idea. No accountability as to who actually got the money, and banks just pocket the cash from lost cards or unspent balances.

mikel

actually, the main reason is for tax purposes! the person in the oval office had started the ball rolling with his 1% on all bank transactions a while back. just waiting to see if he would be re-elected. now that has happened he will move ahead with his 1% tax on ALL bank transactions. fools i say. go to the store and use a debit card or check...1% tax. have your check direct deposited...1% tax. pay your bills by eft...1% tax on each one. get the pic? and you fools fell for the "i won't tax anyone making less than $250k"

我們漢語不可能等待接管您的美國房子!

buckeye15

What was that Alexander Hamilton quote about standing for nothing? Oh yeah:

"Those who stand for nothing fall for anything."

In your quest to hate everything Obama, you have fallen for another flaming lie. Perhaps you should google HR4646.

mikel

not dead yet buckeye, and, notice that i said this would be looked at after the election.

"There was a bill in the 111th Congress, House Bill, HR-4646, the Debt Free America Act, that was introduced on February 23, 2010, but it died in committee and was never voted on or passed into law. Some versions of this eRumor allege that the bill was being sneaked into law by members of Congress but that is also fiction.

The bill was sponsored by Democratic Congressional Representative Chaka Fattah of Pennsylvania and says that it is to "establish a fee on transactions which would eliminate the national debt and replace the income tax on individuals." Fattah has a description of the bill along with a press release posted on his Congressional web site. Fattah is a member of the House Appropriations Committee, not President Obama's finance team, as some eRumors alleged.

The Thomas Library is the official site where legislative bills are posted and progress can be monitored. The bill can easily be found and currently the Thomas Library site shows that the Debt Free America Act is in the House committee and then will be referred to the Committee on Ways and Means, the Committees on the Budget, Rules, and Appropriations. Click here for the Thomas Library for text and status of the bill."

Contango

@ buckeye15:

So you view your love of the Obama personality cult as "standing for something"?

Demagogues throughout history have appreciated such deep faith.

Mr. Hamilton also thought that fiat currency was a good thing and then later reconsidered and rejected it.

"If the American people ever allow the banks to control issuance of their currency, first by inflation and then by deflation, the banks and corporations that grow up around them will deprive the people of all property until their children will wake up homeless on the continent their fathers occupied." - Thomas Jefferson

http://www.biblebelievers.org.au...

Contango

Handling little accounts are costly for banks, so free checking is dead for most without a large minimum balance.

Join a credit union if you don't like it.

Debit cards encourage spending.

Mr. Bernanke's ZIRP policies discourage savings and encourage borrowing and spending.

What the h*ll, we'll just print more fiat currency and borrow more from foreign savers. The Washington elites are bankrupting this country.

luvblues2

A credit union won't even keep your acct. alive if you have the required savings acct. minimum. They require a $100.00 balance in the checking acct. since summer of 2012.

Contango

@ luvblues2:

Good to know. Many min. at banks is now $750, the CU is 'still' less.

The point is that debit card idea is to encourage spending, not saving.

MiddleRight

This may be the worst idea ever.
You know who makes money on prepaid cards, credit card companies.