The Taxman Wants Your Gift Cards
Not content with all of the available avenues of taxation one Wisconsin legislator has his eye on that Best Buy Gift Card you got for Christmas:
Madison – Rep. Fred Kessler (D-Milwaukee) said today that the value of unused gift cards should go to the state treasury – not to the merchant – and that change will be part of a bill he’ll introduce in the legislative session starting in January.
Kessler said millions of dollars a year go unused by gift card recipients, and retailers are allowed to book the unused values after the cards expire. He cited figures from Consumer Reports showing that 19% of all gift cards are not used because they are lost or expired.
Kessler called that a “windfall,” which he said could be used to support schools, health care or roads. Under his bill, after a one-year expiration date on all cards, 80% of the value of unused cards would go to the state treasury. Merchants could keep 20% of the value of an unused card to pay for processing, Kessler said.
“I’d rather have people spend the money and use the gift card, but if they aren’t, I’d rather the state get the money,” Kessler said.
Of course you would. This is the government mindset at work. That money in your pocket, no matter what form it may be in, doesn’t belong to you, it belongs to them, and they are far better at figuring out how to spend it.
H/T: Hit & Run