Monday, Jan. 26, 1970
Charge-a-Tax
In Vergennes, Vt., churchgoers can charge their donations on a credit card, and in Denver women can use their cards to charge a visit to a gynecologist. In Phoenix, the accused can arrange bail on a card, and citizens of Walnut Creek, Calif., can charge at least three dozen city fees, from business licenses to civic theater tickets. Last week the last word in the credit-card way of life was announced: in ten states, U.S. income taxes up to $500 can now be charged on either a BankAmericard or Master Charge card where banks are willing to cooperate.
BankAmericard's new plan will be available in California, Ohio, West Virginia and Kentucky. Cardholders will receive by mail 71-in. by 31-in. cards --actually bank drafts already made out to the IRS--to complete and attach to their 1040 forms. The IRS will deposit the drafts in banks participating in the plan. Cardholders can then pay BankAmericard in one lump sum or in monthly installments at a 15% annual interest rate.
A similar plan--offered by Master Charge in the states of Colorado, Montana, New Mexico, North Dakota, Wyoming--will provide about the same services for interest rates up to 18% annually. As soon as arrangements can be made, the idea is likely to spread to other states, allowing cardholders briefly to escape the immediate and full payment of federal taxes.
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