It seems no one we voted for in the General Assembly is happy with this idea of debit cards for tax refund. No Democrats; No Republicans.
Will JP Morgan Chase will get some personal information on all of us, without our authorization? The problem trying to be solved is the 67% of unclaimed tax refund checks are between $1-$20. This is a problem worth trying to solve, but the solution should not be “just give the money to Chase.”
Here are two excellent stories from CTNewsJunkie.com to get you up to speed. …
Nappier: Debit Cards Will Save $290K
State To Issue Tax Refunds Via Debit Card
Problems:
1. Less security
2. Inconvenient
3. Loss of tax refund
4. Can’t deposit money
5. Must spend
6. Must spend in a year or face penalty
7. Loss of privacy
8. No politician in favor is available to answer question
9. Limited banking rights
10. No one really understands why we are doing this…no dems or repubs.
UPDATE:
On February 14, I received an email from Sarah Kauffman, Director of Communications, Connecticut Department of Revenue. She has for a correction to this article. Below is the email which I am posting in full. I feel I would otherwise need to paraphrase Sarah’s arguments which may make need for more corrections. Also, her comments are reactionary instead of editorial, thus the true context of her meaning may evaporate without posting my actual words. Sarah kindly included her cell number in the email which I have removed as a courtesy.
Will JP Morgan Chase will get some personal information on all of us, without our authorization(the only information release to Chase is that information necessary to issue the debit card for those who do not choose direct deposit. Chase has signed non-disclosure contracts with regard to this information and it cannot be used for any purpose other than to issue and activate the debit cards. This is similar to previous contracts the state tax department has had with check vendors, booklet vendors, etc.) ? The problem trying to be solved is the 67% of unclaimed tax refund checks are between $1-$20. (The problem being solved is the need to cut expenses) This is a problem worth trying to solve, but the solution should not be “just give the money to Chase.” (Any money on inactivated debit cards is returned to the state after one year awaiting claim by the taxpayer or eventual escheatment to the state Treasurer’s Office. Unused money on debit cards is subject to a $1 a month service fee after 365 consecutive days of non use and is eventually escheated to the Treasurer’s Office.)
Problems:
1. Less security (Debit cards are more secure than checks because only the intended recipient can activate the card.)
2. Inconvenient
3. Loss of tax refund (Taxpayers do not lose their refund. Again, see above.)
4. Can’t deposit money (Taxpayers can deposit the refund into a bank account, IRA or other vehicle. Taxpayers can take the card into any bank associated with Visa and ask for a cash advance for the full amount on the card, then use however they choose. Please see the FAQs)
5. Must spend (Untrue. See answer above.)
6. Must spend in a year or face penalty (See information about inactivated cards and the return of refunds to the state for claim by the taxpayer.)
7. Loss of privacy (Whenever the state tax department enters into a contract with a vendor, the vendor is subject to the same state and federal non-disclosure laws and employees of the tax department.)
8. No politician in favor is available to answer question
9. Limited banking rights (The debit cards can be used at ANY bank associated with Visa.)
10. No one really understands why we are doing this…no dems or repub (The answer is in the Treasurer’s press release.)
In the future, if you have any questions or need clarification on tax issues, I encourage you to contact me. It is very important that we give taxpayers correct information
Sarah E. Kaufman
Director of Communications
Connecticut Department of Revenue Services
office - (860) 297-5610
