I just read this on MSN.com. I have always loved tax time and my refund. I thought of it as a safe place for saving my money to do things I needed in the winter or pay off bills. Now I am rethinking it seriously!
I just read this on MSN.com. I have always loved tax time and my refund. I thought of it as a safe place for saving my money to do things I needed in the winter or pay off bills. Now I am rethinking it seriously!
County, according to the US Constitution it isn't legal for us to have to pay income taxes. Ofcourse, if you don't pay them then the IRS will find some way to punish you. According to a number of articles that I have read the 16th amendment which makes taxes legal isn't properly ratified. Here is one of the links that show this. We The People Features - Taxes - Showdown - WorldNetDailyArticle Is Income Tax Legal
Well, of course, the article is right. If you have the self-discipline to be sure you have enough on hand at income tax time, you should pay the minimum you can pay during the year, then pay the rest the next April 15. Now I don't get as much as he mentions the average being, but I do get a refund every year. You might call it forced savings with no interest earned. But when you consider the little dab of interest banks and credit unions are paying on checking and savings accounts, I'm not losing much.
Of course this year is a little different. I've already filed my return with TurboTax and they took it, but the IRS isn't accepting returns with itemized deductions, supposedly because Congress didn't finalize the tax laws until December and the IRS haven't gotten all their computers updated. The TurboTax folks say they'll send me an e-mail when the IRS accepts the return, which isn't expected until mid or late February.
Most people like the idea of having more taxes taken out of their paycheck each week so that they can get a big refund at the end of the year. I do this too. But the fact is, when we have more taxes taken out than necessary, we're essentially giving the government an interest-free loan. That's the reasoning for it being bad.
But like you, I depend on my refund to catch up on bills, do car repairs and so on.
Yes, I know it's an interest-free loan, but it allows me to save money, and like Bird said, it's not like you lose much because interest rates are so low.
What about when you pay in over $5,000 in taxes and have two children which according to the tax forms get you $2000 and your refund is showing up as only $4000 if you don't itemize and then you may still get about the same. The way I see it they are charging me interest for holding on to my money.
Here in the UK our tax inspectors have made such a mess of things that there are millions of people who have not paid enough tax and millions who have paid too much. Tax collection is just far too complicated and should be simplified as a matter of urgency!
It is true, we are often penalized for loaning the government money through income taxes. It is equivalent to investing in the $5000 in the stock market and losing 10 to 20% then being forced to sell at the lower amount.
I do get a refund every year. You might call it forced savings with no interest earned.
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