Americans Prefer Tax Refunds

[Ben]

To begin, and to get my pet peeve out of the way: IT'S NOT A TAX REFUND!!! It's a tax RETURN! They are RETURNING YOUR MONEY that they took from you and used!!

Apparently most Americans like the government to hold onto their money for them. Sadly, the article, from an investment website, even suggests that letting the government do this can be a good thing, because it's a way for people who otherwise wouldn't save their money to set some aside. My experience has always been that people who are responsible savers will save their money and that people who can't wait for their "tax refund" generally can't wait for it because they want to blow the money on something.

If I were the tin-foily type, I would say articles like this are a government commie pinko plot to get more of our money. I have always advocated (though it will never happen) that no tax should be withheld throughout the year, and everyone should have to write a check every April 15th for the taxes they owe. I also promote the great idea that some of you here taught me, that we should then hold all major elections on April 16th.

http://www.foxbusiness.com/personal-finance/2014/02/04/survey-americans-prefer-tax-refunds-to-bigger-paychecks/?intcmp=fbfeatures

[MechAg94]

Bonuses are nice, but not when it is my own money. 

This brings to mind an idea I think came from Great Britain about confiscating 100% of people's income then doling out a paycheck from the Govt. 

[Scout26]

Actually I think you should have to pay your taxes (all of them; Federal, State, Local/Property taxes) writing checks to each entity for the full amount due (no withholding) right before you step into the voting booth.

That way it would encourage/require everyone to participate in the election process.   

[charby]

I think everyone should have to pay quarterly income taxes.

[Perd Hapley]

That way it would encourage/require everyone to participate in the election process.   

You say that like it's a good thing.

[bedlamite]

That way it would encourage/require everyone who pays taxes to participate in the election process.   

FTFY.

[MillCreek]

I would be more enthused about micro-adjusting my withholding if it wasn't for the fact that my typical refund is a few hundred dollars. I earn approximately 0.1% on that amount in my BoA savings account for a grand total of 8 cents for the year or so.  The refund goes automatically to the savings account. It is not worth my time to futz with it. 

[Scout26]

FTFY.

No.  Everyone would pay taxes.  Period. End. Full Stop.  Federal -10% of income, even if that income was only $0.10.  No deductions, no exemptions, no refundable credits, no nothing.  All .gov handouts will be taxed, like Unemployment is now.   "Whadja make last year?  We'll take 10%. Thank you."  States and locals can charge/set their rates or not as they see fit.

I bet every tax collector would be jockeying to be first in the line because by the time folks get to the last collector, they'll be rather hot.  

Also, the money collected that day is what each .gov entity has for their budget the following fiscal year that starts 1 Oct of that same year.  Collect on 15 April, but can't start spending it until 1 Oct.   Gives them 5 1/2 months to work out their budget.  No borrowing, no stealing from next year's money to pay for this year.  No games. Nothing.  What you collect on 15 April has to last 12 months starting 1 Oct.   Might want to have some savings from previous, just in case there's an emergency.

And everything closes by law on 15 April (except Emergency Services and Hospitals).  Tax & Election Day is a National Holiday.  Everyone has to report to the polls.  

That will be the only way to starve the beast.

[brimic]

Actually I think you should have to pay your taxes (all of them; Federal, State, Local/Property taxes) writing checks to each entity for the full amount due (no withholding) right before you step into the voting booth.

That way it would encourage/require everyone to participate in the election process.   

THere is a really good reason  it wasn't set up this way for the masses of asses- compliance wouldn't happen and politicians would have to fear for theur safety when passing pet spending projects.

[RevDisk]

Meh, I view the IRS like I view the mafia. In general, I prefer the IRS owe me a bit of money but not too much. I engineer my taxes so I get a refund of about $500. That way if something changes or I miscalculated, it's generally not a huge impact. OTOH, I'm not giving them an insane interest free loan. Said $500 would give me about $0.50 in interest. I'm not stressing it.

That way it would encourage/require everyone who pays taxes to participate in the election process.

FTFY.

That would be everyone. Gas taxes, payroll taxes, cigarette taxes, import duties, cell phone taxes, etc.

[RoadKingLarry]

I usually end up getting a couple hundered or so back from fed and turn around and pay the state with that.

[Ben]

I think a lot of people try to get within a reasonable plus or minus of zero, which I think is a prudent way to work our current structure.  I recognize that people here understand how much of their money goes to taxes, but I think way too many people think  (or suppress) that they are paying thousands in taxes throughout the year. That money is invisible to them since it's removed before they see it, and they only see the "owed by" or "owed to" on their annual statement as their "tax".

"Woohoo! I got $2000 from the government!" or " Damn! I had to pay $1000 in taxes this year!".

[Tallpine]

I usually end up getting a couple hundered or so back from fed and turn around and pay the state with that.

Yeah, we usually get a bunch back from the feds and owe the state a little.

It wouldn't be so bad except that my work is on and off, so when I'm working full time or more they really whack my pay - over 40%.

[AJ Dual]

Hell, I'm not turning down the money, but the 10 months of joblessness pushed my income for 2013 down to the point I qualified for EITC and got more "back" than I paid in.

So to those of you gainfully employed and in a tax bracket where you pay more than you consume in .gov services, "Me 'ats off te ye Govnah!"

Thanks above that my enlistment in the FSA is at an end. 

[bedlamite]

That would be everyone. Gas taxes, payroll taxes, cigarette taxes, import duties, cell phone taxes, etc.

You really want the government keeping track of everything you purchase? I can understand income/property taxes, but no thanks on the rest.

[RevDisk]

You really want the government keeping track of everything you purchase? I can understand income/property taxes, but no thanks on the rest.

I was just pointing out that nearly everyone does pay taxes to the feds. I'd prefer a flat rate income tax that covered all income.

[Ben]

You really want the government keeping track of everything you purchase? I can understand income/property taxes, but no thanks on the rest.

I sure don't, but it's getting harder and harder every year to both get cash and pay in cash.

[Scout26]

I was just pointing out that nearly everyone does pay taxes to the feds. I'd prefer a flat rate income tax that covered all income.

Agreed.  Use taxes (sales, gasoline, phone, etc) should be collected at point of sale.  While I disagree with cigarette, phone,  internet and other like taxes on general principle, I have no problem with fuel taxes as long as the money is used solely for road maintenance, construction and repair.  Having to fight off the greenies to build a new road because some bug might lose it's home, should be funded by said greenies, when they lose.

However, Income Tax(es), Property Tax(es) should be collected only once a year.  Withholding is an insidious way to fool people as to how much they actually pay in taxes.  As most people (e.g. low information voters) view a tax refund as "Free Money" that kindly Uncle Sugar "gives" to them.  Not a return of monies taken from them through the course of the year.

And as I pointed out in my prior post, collection of Federal Income taxes begins at $0.10 for the year.   A flat 10%.  No exemptions, deductions, credit or other tom-foolery.  Whatever you made, you give 10% off the top to Uncle Sugar.  Period. End. Full Stop.

[bedlamite]

And as I pointed out in my prior post, collection of Federal Income taxes begins at $0.10 for the year.   A flat 10%.  No exemptions, deductions, credit or other tom-foolery.  Whatever you made, you give 10% off the top to Uncle Sugar.  Period. End. Full Stop.

Friend of mine's wife is a stay at home mom, and volunteers during the day. No income. None. Nada. Zip. You gonna make her pay too?

[Perd Hapley]

Friend of mine's wife is a stay at home mom, and volunteers during the day. No income. None. Nada. Zip. You gonna make her pay too?

0 * .10 = ___?

[Perd Hapley]

Withholding is an insidious way to fool people as to how much they actually pay in taxes.  As most people (e.g. low information voters) view a tax refund as "Free Money" that kindly Uncle Sugar "gives" to them.  Not a return of monies taken from them through the course of the year.

I thought the purpose of withholding was to get the money at the source, before those who earned the money could spend it or hide it. Or just not pay it.

[charby]

I thought the purpose of withholding was to get the money at the source, before those who earned the money could spend it or hide it. Or just not pay it.

T minus to AZRedhawk and his shoot you in the face for taxes comment.

[bedlamite]

0 * .10 = ___?

Now go back and read post 5 and 7.

[Perd Hapley]

So if someone has no income, it bothers you if that person pays a ten percent income tax?

[bedlamite]

So if someone has no income, it bothers you if that person pays a ten percent income tax?

Not at all, but some noses got all out of joint when I suggested that maybe some people wouldn't pay taxes.