Friday, 23 February 2018

TAX Refund? That's a problem....................from Rico

It's "tax season" again, and I know a few people who are eagerly looking forward to their tax it's a gift or a present or something positive.
I never understood that mentality. After all, it's YOUR own money that you are getting back...why did you not keep it to begin with?
A "tax refund" means that you [read: happy tax payer] made an interest-free loan to the Government [read: happy tax spender] by overpaying your taxes.
- You lost the use of that money, earned no interest on that money, and get to 'eat' whatever value that money lost to inflation.
As is often said: "Great play, Shakespeare!"
It's smarter to try for 'neutral tax buoyancy' instead (neither underpaying nor overpaying, but zero-ing out) during the year, and at worst writing a very small check at the end of the year.
You will never hear a Democrat saying what Ronaldus Maximus often said (because it's the truth):
"The problem isn't that you're not taxed enough, but that government spends too much."

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