It's My Money & I Want It Now

Borrowing from a popular tagline from J.G Wentworth about having access to our lump-sum settlements or annuities, taxpayers are funding the government with interest free loans to the point that we're talking serious money.

Last year just over $3,000 was the average refund. This year, it's just under $3.000. That's $3,000 times the millions of taxpayers that the government gets to use for up to 12 months - or longer to loan out (for interest) or fund other programs without any compensation coming to us for the use of our unsecured gifts.

While getting a $3,000 check - more or less - is nice, it amounts to nothing more than a return of money we paid into a non-interest bearing savings account of which the government was the depository. Wonder how much money they made by investing our surplus deposits?

Most taxpayers enjoy getting the money in a lump-sum payment once a year, but they would do better to have the money as part of their takehome pay or in a savings account they controlled. The argument is often made that this is a forced savings. It is, but then just set up a savings account at a bank or credit union and have the money deposited there instead of having a generous tax withholding if that's the point. Otherwise, taxpayers should elect to change their withholding to break even or get back just a few dollars once a year.

It's our money, so let's use it or have it avaialble when we need it. The money over and above our tax obligation that we gladly deposit to get back as a "refund" should just retain by changing how much is withheld.

 

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For more information on my coaching and educational programs and services, visit my website or go to my other blog "Steve Hoffacker's Home Sales Insights" for additional sales tips, insights, and commentary. Listen to my free podcast messages at "Steve Hoffacker's Happenings."

Steve Hoffacker - Sales Trainer, Author of Sales Books, Commercial Real Estate Broker, Marketing Consultant, Sales Coach, Blogger, Photographer, Motivator, Podcaster, and Teacher. - for Realtors, Real Estate Sales Professionals, Home Builders, New Home Salespeople, Entrepreneurs, Small Business Owners, and Independent Sales Representatives.

© Steve Hoffacker, 2012. All Rights Reserved.

12 comments • Steve Hoffacker - Sales Trainer/Coach, Sales Books Author, Photographer • March 22 2012 12:22PM

No Laffing Matter

Have you heard that income tax on the wealthy is being discussed at the rate of 77%?

Have you heard of economist Art Laffer? His Laffer Curve (maybe you've heard of that) shows that tax revenues go up with production and increasing wages until the tax rate reaches about 50%. Then there is a direct inverse relationship between rising tax rates and declining output. Higher taxes, therefore, are not the answer. Reduced spending - dramatically reduced spending - is.

Laffer says that regardless of what the tax rate is, the fact is that about 18% of the income earned in America is paid to the government in income taxes. So, if rates were substantially lower than the are now, people would have more disposable income and might be inclined to increase consumption - still yielding the government their 18%. If they rise substantially, same 18%. Why not go for the ecomonic stimulation with lower rates?

By the way, he goes on to say that an 11% Flat Tax or Fair Tax would completely replace everything collected by the feds right now - income tax, FICA, Medicare, estate taxes, excise taxes, etc. In fact Jerry Brown proposed a 13% flat tax in 1992 in his campaign for the Democratic Presidential nomination (he wanted the 2% surplus to pay down the debt).

Definitely not funny. Worth coinsidering.

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For more information on my coaching and educational programs and services, visit my website stevehoffacker.com or go to my other blog homesalesinsights.com for additional sales tips, insights, and commentary. You can also listen to my free podcast messages at Steve Hoffacker's Happenings.

© Steve Hoffacker, 2010. All Rights Reserved.

 

22 comments • Steve Hoffacker - Sales Trainer/Coach, Sales Books Author, Photographer • April 13 2010 02:17PM