Under this approach, the Internal Revenue Service would delay the bulk of the earned income tax credit payments these families are owed, stretching the payments they would otherwise receive next spring over the following 12 months instead.
But by stretching the payments over a long period of time, long-term loans coax people into buying cars they can't afford--and the car will have almost fully depreciated by the time it's paid for.
"That's like a Nassau County deal where you just stretch out the payments," he said.
Companies have been pushing Congress to change the rules that govern pension calculations, in ways that would reduce mandatory contributions or stretch out the payments.
It is also seeking to stretch out the payments for its future retiree benefits and to receive a refund of $11 billion that it has overpaid into one of its pension funds.
On Friday, after Mr. Bloomberg challenged him to come up with a better proposal, Mr. Pataki came up with a compromise: he proposed having the city stretch out the payments over 10 years, instead of 30 years, and said that the state would pick up the payments.
When they do, they'll name each other as primary beneficiaries and their boys as contingent beneficiaries; that could allow the boys to stretch out the payments from the IRAs and thus the tax deferral over their own lives.
You can stretch out the payments on federal loans to as long as 30 years, depending on how much you owe (You'll need to owe more than $60,000 for the 30-year plan; owe less than $20,000, and you'll have 15 years).
You can stretch out the payments on federal loans to as much as 30 years, depending on how much you owe (You'll need to owe more than $60,000 for the 30-year plan; owe less than $20,000, and you'll only have 15 years).
