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.



Read MoreWhy would Obama pick Sylvia Burwell to succeed Kathleen Sebelius as head of HHS?

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?