How many times have you heard this?
One of my sub-contractors employees told me that he is getting a huge tax return from the IRS. Wonderful. It seems that he sets it up this way on purpose. He is willing to give Uncle Sam a few extra bucks every week so that he will get it all back in April of the next year. He says it is like his savings account.
I wonder how many people in this country do the same thing? Instead of putting more in their 401K or having the money put directly into a savings account, they just hand it over to Uncle Sammy. Why lower your tax burden or increase your net worth with the power of compounding interest, when you can just give it to the government who will give you the exact same amount back a year later?
The guy goes on to tell me that he is going to buy a big screen TV with his refund check. He says that he would never be able to save this much otherwise. Amazing. The IRS is a savings account?
I truly believe that this type of ignorant thinking is a direct result of our educational system. When citizens start to think of their money being best served in the governments hands, it is indeed a scary thought.