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US seizing tax refunds of children over parents' debt?!

The government is now going through old records to see if it overpaid people on Social Security. If it thinks it did, it can now seize the IRS tax refund checks of the CHILDREN of those people it thinks it overpaid.

This isn't a proposal—it's already happening. For the past three years, the government has been confiscating hundreds of thousands of Americans' tax refunds, according to the Washington Post. It has already confiscated $1.9 billion in tax refunds this year alone.

Peter Zander | Workbook Stock | Getty Images

The amazing thing is that the government is doing this even if it has little or no proof and no exact details. And the letters the government sends to unsuspecting taxpayers are frightening, use accusatory language, and include other financial threats.

"They gave me no notice, they can't prove that I received any overpayment, and they use intimidation tactics, threatening to report this to the credit bureaus," Mary Grice, who had her tax refunds seized a few weeks ago, is quoted as saying.

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As usual, no one in the government is willing to take the responsibility for this new policy—Social Security said it didn't do it, ask the Treasury Department. Treasury said—ask Congress.

If you think this is some kind of unprecedented outrage, you're right. But here's some advice: get used to it.

Tax refunds are clearly becoming the new promised land for government regulators and bureaucrats desperate for more revenues. We already know that confiscating tax refunds are the only real way the IRS will be able to impose Obamacare non-compliance penalties, and now it seems like the Social Security Administration is jumping on that bandwagon.

But there's a more powerful and disturbing message here. Remember that the people who benefited from these alleged Social Security payments have not committed any crime—that's why the government doesn't need to provide any proof or real documentation. It's more likely that the SSA simply screwed up and expects the descendants of its accidental beneficiaries to pay up. And again, the money comes out first before you can protest and find out why.

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So, now we have yet another very good reason to make sure you don't get a tax refund. First, getting a tax refund means you've given the government a free loan for 12 months.

Second, tax refunds are the only way you can be punished—rightly or wrongly—for any ACA individual mandate non-compliance. And third, your tax refund is now a possible target for government bureaucrats who screwed up in the past and want to come after your money to make it right. If the SSA can do it, what's to stop the other agencies?

After hearing this story, you wouldn't think anyone would have to remind the public that Washington already controls too much of their money and has trampled on too much of our financial rights. But I will anyway since so many politicians and other elites don't seem to be backing down on their incessant calls for more regulations, oversight and of course, more taxes.

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Once again, we have a case of the government saying: "When you screw up, you pay. When we screw up, you also pay."

If only our elected leaders would be so honest with us at election time.

This is commentary from Jake Novak, the supervising producer of "Street Signs." Follow him on Twitter @jakejakeny.