Tweet
I have to agree that the powers that be need to leave the withholding tables ALONE! Taxpayers can not make informed decisions regarding their W-4, refunds, or taxes due if part of the equation changes on them in the middle of it.
Both Dem and Rep have played this game and it only confuses the taxpayer at tax time. Here is how it goes in the tax office. Either they owe money or they get a refund. If they owe they want to know what can they do differently. We tell them to change their W-4. People that get refunds usually want to know how to get a bigger refund. Again...back to the W-4 and the withholding tables.
I have said that if they (powers that be) want to see an impact they would do the exact opposite, change the withholding tables so that MORE is withheld each paycheck. Those that didn't want more withheld could change their W-4. Most people won't make the effort to change their W-4. Those in charge are betting on that also.
Come tax time they get that money back....bigger refund, more spending by the average tax payer that is now happy that they get a bigger refund.
Yes, I completely understand why NOT to give the govt the loan of your money (extra withholdings), but I also know that the average person out there isn't good with saving and they do go out and spend this big refund check.
BTW, we are seeing people that qualify for the 1st time homebuyers credit but the 2008 one has to be repaid. As soon as they hear it isn't "free" money they don't want to take it. They are forgetting that it is an interest free loan, paid back over 15 years (I believe that is right). I will be you every single one that has declined it has outstanding debt with more than 0% interest. OH well.....
Both Dem and Rep have played this game and it only confuses the taxpayer at tax time. Here is how it goes in the tax office. Either they owe money or they get a refund. If they owe they want to know what can they do differently. We tell them to change their W-4. People that get refunds usually want to know how to get a bigger refund. Again...back to the W-4 and the withholding tables.
I have said that if they (powers that be) want to see an impact they would do the exact opposite, change the withholding tables so that MORE is withheld each paycheck. Those that didn't want more withheld could change their W-4. Most people won't make the effort to change their W-4. Those in charge are betting on that also.
Come tax time they get that money back....bigger refund, more spending by the average tax payer that is now happy that they get a bigger refund.
Yes, I completely understand why NOT to give the govt the loan of your money (extra withholdings), but I also know that the average person out there isn't good with saving and they do go out and spend this big refund check.
BTW, we are seeing people that qualify for the 1st time homebuyers credit but the 2008 one has to be repaid. As soon as they hear it isn't "free" money they don't want to take it. They are forgetting that it is an interest free loan, paid back over 15 years (I believe that is right). I will be you every single one that has declined it has outstanding debt with more than 0% interest. OH well.....
Comment