It seems the State of Rhode Island is threatening to close businesses for not paying sales taxes and I think those businesses should call their bluff.

PROVIDENCE — State tax officials have put more than 1,200 businesses across the state on notice this week that they are out of business unless they pay their overdue sales taxes immediately.

For most, that action came in the form of a personal visit from the state Division of Taxation, ordering business owners to lock their doors at once.

I believe we have crossed the proverbial tipping point and any threats by government agencies, banks or other financial institutions to cut off credit or shut down businesses will lead to anarchy, non-compliance, and general mayhem. There are articles coming out daily whereby citizens are simply giving up such as this one from the New York Times.

Like many who default, Ms. Birks first asked her credit card company to lower her 19 percent interest rate. No dice, Bank of America responded. After she tried to get the bank’s attention by skipping a payment, it immediately raised her rate to 25 percent. As Ms. Birks’ debt swelled, so did a sense of injustice mingled with helplessness.

…

Ms. Birks asked Bank of America about a settlement this spring. Since her account was up to date, she was told she didn’t qualify. She stopped paying, the bank started calling.

When Bank of America finally got her on the phone, it agreed for the first time to drastically reduce her interest rate. She did not take the deal, but considered it progress.

The State of Arizona wants to sell its Capitol Building and the State of California has solved its budget crisis by taking money from cities and continues to issue IOUs.   I say call their bluff.