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Americans Are Delaying Health Care Until Tax Refunds Arrive
11–20 of 256 posts
Re: Americans Are Delaying Health Care Until Tax Refunds Arrive
#12Who is getting a tax refund? I got crushed versus last year on my taxes because of the orange buffoon's tax plan.
I am curious as to the reason why. Do you live in a state with high state income tax?
Re: Americans Are Delaying Health Care Until Tax Refunds Arrive
#13Who is getting a tax refund? I got crushed versus last year on my taxes because of the orange buffoon's tax plan.
Whether you get a huge tax refund or not is about how much you chose to overpay on withholdings not how much you were taxed.
Re: Americans Are Delaying Health Care Until Tax Refunds Arrive
#14Withholding is an awful idea designed to favor the government over the taxpayer and to psychologically soften the blow of the ridiculous tax rates we pay. It's especially bad with mandatory withholding by the employer. It shouldn't happen. Taxpayers ought to figure out how much they owe and write the check for it at once. This is especially true since consumers can't invest that income or get interest on it: I could get a 6-month CD and make some extra money otherwise.
Re: Americans Are Delaying Health Care Until Tax Refunds Arrive
#15Who is getting a tax refund? I got crushed versus last year on my taxes because of the orange buffoon's tax plan.
I am curious as to the reason why. Do you live in a state with high state income tax?
Anyone living in a state with high income and/or property taxes will likely pay more this year given the $10k cap on deductions for state and local taxes which was previously unlimited before the 2018 tax year...
Re: Americans Are Delaying Health Care Until Tax Refunds Arrive
#16Withholding is an awful idea designed to favor the government over the taxpayer and to psychologically soften the blow of the ridiculous tax rates we pay. It's especially bad with mandatory withholding by the employer. It shouldn't happen. Taxpayers ought to figure out how much they owe and write the check for it at once. This is especially true since consumers can't invest that income or get interest on it: I could…
I would like that system, but unfortunately most of our fellow citizens would end up broke come tax time. Most people simply say "I can spend until my bank account is empty".
That's why most people choose impound accounts when they get a mortgage. Because they literally can not budget money for the bi-annual property tax bill, so they have the bank take the money every month.
It's also why teachers are offered a 10 check plan or 12 check plan. They get the same money, but most of them choose the 12 check plan, just so they don't have to remember to save money to live in the summer.
That's why the banks offer those "save your pennies" plans. Every time you make a debt card charge, they round up to the nearest dollar and then put the rest in a savings account for you. Because people are that bad at budgeting.
Can you imagine most of the people you know having the ability to set aside 20% of their check each month and not spending it ever?
Re: Americans Are Delaying Health Care Until Tax Refunds Arrive
#17This is insane given that the executive branch has been jiggering around with the withholding amounts for the entire year. Yes, you probably paid slightly less in tax during the year, but unless you were paying attention to your federal withholding, you're probably in for a shock with your federal return.
The solution to people’s inability to save is not for the government to hold their money hostage.
> The solution to people’s inability to save is not for the government to hold their money hostage.
Meanwhile, in the real world where the left-hand side of the Bell curve exists, and where many people have poor impulse control, that actually is the solution to some people's inability to save.
Heck, as a student I worked in a union shop where this was actually baked into the collective agreement because of past experience of people not being able to save.
It shouldn't necessarily be mandatory, and there are ways to adjust one's withholding taxes, but it isn't all-bad.
Re: Americans Are Delaying Health Care Until Tax Refunds Arrive
#18Earlier quoted context omitted.
I am curious as to the reason why. Do you live in a state with high state income tax?
Anyone living in a state with high income and/or property taxes will likely pay more this year given the $10k cap on deductions for state and local taxes which was previously unlimited before the 2018 tax year...
Anyone who pays 10k in state taxes is going to be well into the top 10% of incomes.
Re: Americans Are Delaying Health Care Until Tax Refunds Arrive
#19Withholding is an awful idea designed to favor the government over the taxpayer and to psychologically soften the blow of the ridiculous tax rates we pay. It's especially bad with mandatory withholding by the employer. It shouldn't happen. Taxpayers ought to figure out how much they owe and write the check for it at once. This is especially true since consumers can't invest that income or get interest on it: I could…
And what proportion of taxpayers would be sufficiently disciplined to make sure they have funds on hand to write that check at the end of the year (or quarter, or month)?
Maybe you'd have the foresight to get a 6-month CD, then pay your tax with the money at the end of that period (and pocket the interest), but the majority of your compatriots would have long since spent it -- whether on healthcare or a holiday in Vegas, either way it's gone.
Re: Americans Are Delaying Health Care Until Tax Refunds Arrive
#20Earlier quoted context omitted.
I am curious as to the reason why. Do you live in a state with high state income tax?
Anyone living in a state with high income and/or property taxes will likely pay more this year given the $10k cap on deductions for state and local taxes which was previously unlimited before the 2018 tax year...
The deduction wasn't limited under the normal tax, but it wasn't allowed under AMT, so it was effectively limited by AMT.