Wednesday, August 18, 2010

Cheap Talk: The PA Tax Amnesty

My current research involves state tax amnesties, and part of it is going to involve credible threats. Remember this creepy commercial that circulated the web last spring?

Well, the amnesty is over. Time for the crack downs to begin, right? Rebekah Lu reports:
In the wake of the Pennsylvania Sales Tax Amnesty program, which Governor Rendell calls 'an overwhelming success' Pennsylvania has announced that it is still willing to take money from any tax delinquents out there who didn't pay up when they had the chance to avoid paying penalties. (The Amnesty program waived all penalties plus half the interest owed.)During the amnesty program the state had suspended the voluntary disclosure program which is the usual avenue for delinquent taxpayers to come forward and pay their debts. As of August 1st that program is again available. In return for coming forward voluntarily taxpayers now taxpayers will be responsible for any taxes owed plus all the interest. A 5 percent non-participation penalty is also assessed.
So by "amnesty", the state was really just undertaking a heavy marketing promotion of a special they were running on an already existing and permanent tax amnesty program. Half-off everybody, this time only!!


Anonymous said...

I didn't find creepy this ad, is awesome how well is described the nature of taxation.

Anonymous said...

I also think it is creepy. Clearly, that was the intention.