Since it’s tax season, a thought has entered my head that I’ve never gotten a satisfying answer to.
Why does everyone seem to thnk its great to get a tax refund every April ?
Think about it for a second. When you get a tax refund it bascially means that you’ve overpaid your taxes for the previous year. Yea, you get your money back but Uncle Sam doesn’t pay interest does he ? Of course not.
Wouldn’t it be better if you had that money back in July rather than getting it ten months later ? One would think most people would figure that out, but somehow everyone has bought into the IRS’s refund scam.
Getting a tax refund basically means you’ve given an interest free loan to the government. Who wants to do that ?
So remember. If you’re paying taxes this April, you’re doing good (and do it at the last minute, there’s no reasons for the government to get your money any earlier than it needs to). If you’re paying, you’ve just lost a sucker’s bet. Adjust your withholding and keep your money in your own pocket.
Tax Time Thoughts
Doug Mataconis at Below the Beltway makes the point that I’ve always said around this time every year: Why does everyone think it’s a great deal when they get a refund on their taxes? Think about it. All it means
There are industries in place whose existence depends on there being refunds returned to taxpayers. Like the file your taxes and buy a car scam.