I agree that it is not the best decision to let Uncle Sam hold your money all year long, but for some people that is the best decision for them at that time. Some people are not deciplined enough to put that money to the side. As was said, they will spend it as it comes in and will probably do the same when the big refund check comes in.
When my husband and I were younger, we had Universal cash-value life insurance. Do you think that that was a wise choice? No, but at that time, our insurance agent knew that we were saving very little money and was not contributing the maximum to our ira's. Some years down the road when we had more knowledge about finances, we cashed it in and invested the cash part. We switched to term-life insurance which made more sense for us. So, that life insurance policy became like a savings for us and thankfully, we were able to see the benefits of investing it wisely and adding to it everymonth.
That's why one shoe doesn't fit all. Each person is at a different stage in their understanding of money and sometimes having people hold our money saves us from ourselves.
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