For most taxpayers, refunds are what the tax system is all about. And, for 80% of the population the obsession with the annual refund causes bizarre behavior, from anxiety to slight dishonesty; even routinely having more tax than necessary taken out of our paycheck. What rational person overpays in order to get something back at a later stage?

Most people don’t realize that a tax refund basically means that you are giving the Government an interest-free loan!

Why should the Government receive the benefit of your hard-earned money?

You should reduce the amount of money being withheld by the Government from your paycheck (you could increase the number of exemptions); save the extra money all year, and earn the interest on it yourself.

Place the money toward your retirement fund; make a college fund (for your children; grandchildren, or a child who deserves a excellent education but doesn’t have the resources); invest in tax liens/mortgage notes; take advantage of tax-deferred savings accounts (if you are over 50); build an emergency fund.

The problem (in America) is that the majority of the population views their tax refund as a gift. In a way, I guess it is, after all who, more than you, deserves the spoils of that hard-earned money? And, don’t we just have to spend our “gift,” and have fun?!

But, as gas prices climb towards the $4.00 mark; houses decrease in value; mortgage defaults rise (1.8 million predicted in California over the next 12-24 months); a stock market that resembles a roller-coaster ride; and the never-ending Middle East conflicts, perhaps a subtle shift will occur and we will soon realize that we really are getting older, and had better start saving for that extended retirement.

The anxiety over who will look after me? How will I survive if I have no money? Eventually these concerns may just push us to change the way that we view our tax refunds (and other sources of finance) in the future.

Did You Know?

The first known system of taxation was in Ancient Egypt around 3,000-2,800 B.C. in the First Dynasty of the Ancient Kingdom?

Alaska, Florida, Nevada, South Dakota, Texas, Washington State, and Wyoming do not have income tax?

That 75% of Australians use a tax agent; the highest proportion in the world?

In Britain and New Zealand it is voluntary to submit a tax return (2 out of 3 citizens DO NOT file)?

In New Zealand the tax has already been deducted from the salary; any income from interest or share dividends has already been deducted – adjustments are made throughout the year by the Government, and by the end of the financial year there is small (if any) money owing?

What we need is a Flat Rate Tax for Individuals and A Flat Rate Tax for Businesses. The same rules applying to ALL regardless of the size of income. We would ALL be paying the same rate.

The more tax associated paperwork intrudes on someone’s life, the worse they feel about it!

How much fun is there really in a Tax ReFUNd ??????????

Have an opinion or a question you would like me to answer; write to me! http://www.CarlHampton.com

“Your” Money Matters by Carl Hampton
From the Author of “From Credit Despair To Credit Millionaire.”

Carl Hampton
http://www.articlesbase.com/advice-articles/how-much-fun-is-there-really-in-a-tax-refund–131911.html

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