How Much Fun Is There Really In A Tax Refund ?

For most taxpayers, refunds are what the tax systemThe anxiety over who will look after me? How will I
is all about. And, for 80% of the population thesurvive if I have no money? Eventually these concerns
obsession with the annual refund causes bizarremay just push us to change the way that we view
behavior, from anxiety to slight dishonesty; evenour tax refunds (and other sources of finance) in the
routinely having more tax than necessary taken out offuture.
our paycheck. What rational person overpays in orderDid You Know?
to get something back at a later stage?The first known system of taxation was in Ancient
Most people don't realize that a tax refund basicallyEgypt around 3,000-2,800 B.C. in the First Dynasty of
means that you are giving the Government anthe Old Kingdom?
interest-free loan!Alaska, Florida, Nevada, South Dakota, Texas,
Why should the Government receive the benefit ofWashington State, and Wyoming do not have income
your hard-earned money?tax?
You should reduce the amount of money beingThat 75% of Australians use a tax agent; the highest
withheld by the Government from your paycheck (youproportion in the world?
could increase the number of exemptions); save theIn Britain and New Zealand it is voluntary to submit a
extra money all year, and earn the interest on ittax return (2 out of 3 citizens DO NOT file)?
yourself.In New Zealand the tax has already been deducted
Put the money toward your retirement fund; create afrom the salary; any income from interest or share
college fund (for your children; grandchildren, or a childdividends has already been deducted - adjustments
who deserves a good education but doesn't have theare made throughout the year by the Government,
resources); invest in tax liens/mortgage notes; takeand by the end of the financial year there is little (if
advantage of tax-deferred savings accounts (if youany) money owing?
are over 50); build an emergency fund.What we need is a Flat Rate Tax for Individuals and
The problem (in America) is that the majority of theA Flat Rate Tax for Businesses. The same rules
population views their tax refund as a gift. In a way, Iapplying to ALL regardless of the size of income. We
guess it is, after all who, more than you, deserves thewould ALL be paying the same rate.
spoils of that hard-earned money? And, don't we justThe more tax associated paperwork intrudes on
have to spend our "gift," and have fun?!someone's life, the worse they feel about it!
However, as gas prices climb towards the $4.00 mark;How much fun is there really in a Tax ReFUNd
houses decrease in value; mortgage defaults rise (1.8??????????
million predicted in California over the next 12-24Have an opinion or a question you would like me to
months); a stock market that resembles aanswer; write to me!
roller-coaster ride; and the never-ending Middle East"Your" Money Matters by Carl Hampton
conflicts, perhaps a subtle shift will occur and we willFrom the Author of "From Credit Despair To Credit
soon realize that we really are getting older, and hadMillionaire.
better begin saving for that extended retirement.