Republican trickle up mathematics.
See, here’s the thing I keep reading. People complaining or reporting that their REFUND is smaller. Not that their tax burden was smaller. There is a drastic difference between the two.
And you should work hard to pay a little at the end of the year or get a very small refund. A refund means you OVERPAID your taxes and gave the government an interest free loan. You’d be much better off taking that amount overpaid out every paycheck.
Thus far the average tax refund has been about $1,800. That’s $150 a month you overpaid the government every month. Why not work to get your withholdings to the appropriate level so that you are as close to zero as possible every year? It makes better financial sense. I know I could use an extra $150 a month instead of all at once.
Alas, our 80,000 page tax code makes this so incredibly difficult it boggles the mind.
When you trickle down on something, doesn’t that mean you’re p!ssing on it?
I believe most people who expect a refund know they are overpaying their taxes throughout the year. It is a twofold issue. If they overpay during the year they help prevent owing tax at the end of the year even if they get an unexpected windfall. They are also aware it is a way to force them to save some money during the year so they can have a little treat, or maybe take a vacation. Who cares if the government can use the money interest free during the year. It’s not as though they would get any interest on it in a bank (even if they could put that amount aside each month), investments are risky, and hiding it in your house is just plain stupid. Don’t assume people are ignorant of the system.