“I am stunned to know what the average refund is,” Smith said. “$2,200 [in 2007], that’s too much, right?”
“It is too much,” said Money magazine senior writer Janice Revell.She explained that the checks actually represent an interest-free loan between the government and taxpayers.
“When you get your refund it feels like this big windfall, you’ve won the lottery, but in essence what you’ve done is you’ve loaned your money, interest-free, to Uncle Sam for the year,” Revell said. “It just makes no sense.”
She said that when tax refunds get to be more than $500, a taxpayer should adjust their withholdings by filling out a new W-4 form with their human resources department.
Revell also told viewers to spend 10 percent of what they get back as a way to “treat yourself,” but use the rest to reduce credit card debt, invest in retirement and build an emergency fund.
Editor at Large
Comments Policy
Hey Harry..you and all your
April 11, 2008 - 16:04 ET by bigtimerHey Harry..you and all your ilk should take a poll on that...then be sure and spin it your way (CNN and Judy Woodruff were good at that, they would always take a poll and say that people do NOT want tax cuts)...while you are at it...give a huge donation to the govt. to help them out...all of you.
"Never murder your opponent when he is committing suicide." ~ W. Churchill
All the Leftoid rich
April 11, 2008 - 16:11 ET by mattmAll the Leftoid rich hypocrites who don't like the program can send me their rebate if they don't want it.
To be fair to Smith (yeah,
April 11, 2008 - 16:16 ET by motherbeltTo be fair to Harry Smith (yeah, I'll force myself to do it..), it sounds like he was stunned that Americans have so much withheld from their paychecks as a way to "save." I thought it sounded like Smith's "that's too much, right?" was meant to tee her up for her answer, which is for people to adjust withholding downward.
Agree with you, MB. I was
April 11, 2008 - 16:23 ET by Indiana JoeAgree with you, MB. I was going to say there's really nothing in the quotation that suggests Smith thought taxes were too low, just that maybe withholding was too high.
It's why I changed my W-4. Now I owe something like $52 instead of a refund. Maybe I cut a little close to the bone, but it's nice to have that extra throughout the year.
ditto on the agreement
April 11, 2008 - 16:49 ET by mom_roxI read Harry's comment the same way. We also try to owe money at tax time. It's sad when so many people think they've won the lottery when they get a big refund check.
A government that robs Peter to pay Paul can always depend on the support of Paul.
- George Bernard Shaw, 1944
Rush Limbaugh used to joke
April 11, 2008 - 17:50 ET by motherbeltRush Limbaugh used to joke about the people who would proclaim "I didn't pay any taxes, I got money back!" thinking that it was a bonus. We have it figured so that we have to pay a few hundred dollars every year. IMO, it's better to have that money in your paycheck every week or month, even if you put it aside in a savings account to spend at one fell swoop evry year, than to loan it, interest-free to the government.
Agreed
April 11, 2008 - 17:52 ET by doogiesdI look for a 'wash' come April 15th and I don't pay that till the night of the 13th... every little bit in my pocket counts...
Good Advice
April 11, 2008 - 16:17 ET by CaringwhiteguySounds like pretty good advice to me. What's wrong with telling people to stop lending the government money interest free?
Im gonna have to pay the
April 11, 2008 - 16:47 ET by Dan The Man 2Im gonna have to pay the government about 3K this year after witholding. The stock market was good to me.
Nuke em til they glow then shoot em in the dark.
Don't put your arm out of
April 11, 2008 - 16:50 ET by Indiana JoeDon't put your arm out of joint patting yourself on the back, there, Dan.
Braggart.
;^)
Is it possible HS didn't
April 11, 2008 - 16:49 ET by NortoIs it possible HS didn't even grasp what the topic was?
It seems even if people are getting hosed on the tax system, they still feel like they are ahead if they are getting something back. Hey! It's our money to begin with!
I know it was unnecessary for me to say that.
Taxes
April 11, 2008 - 17:20 ET by iveseenitallAny tax is too high, IMHO. But, right Paul, Revell was implying much more than "liberal" Harry was saying.
NEVER,NEVER trust a "liberal"
Christmas bills
April 11, 2008 - 18:13 ET by ScrapironI know a lot of people who let the government hold the money so they can 'go big' at Christmas, file their return immediately after getting the W-2 and use the money to pay off the Christmas bills. If they take the money monthly it's gone monthly and they know it.
Old, Retired and glad of it.
I had a friend who did
April 11, 2008 - 18:30 ET by motherbeltI had a friend who did that...they used to get about $3000 every year...she said it was the only way they could save.However, the government penalizes you for under-withholding. I ran into that this time because my husband went on disability and SSDI and there were no taxes being withheld. When I realized it I started putting money away on my own every month, but I got hit with a penalty for owing more than $1000. This year I made sure the withholding gets done!
Every few years I get a lot
April 12, 2008 - 09:16 ET by danboEvery few years I get a lot of capital gains. But I never know when. As a result, those years, I get hit with lots of taxes. And the penalty. Then last year. Not a lot of capital gains. They sure didn't give me money back for all the extra money I gave them interest free.
"There is a clear attempt to establish truth not by scientific methods but by perpetual repetition."
- Richard S. Lindzen, Ph.D. Professor of Meteorology, MIT
What is
April 11, 2008 - 18:41 ET by DelsaAverage?
Tax Refunds
April 11, 2008 - 18:50 ET by Jay in NHGuys, the reason the refunds average so much is due to the refundable Earned Income Credit that can be up to $4,800 this year. Rather than an interest free loan to the government, it is an under- overseen grant program that, in essence, rewards single parenthood.
Is there bias here?
April 11, 2008 - 18:56 ET by nkviking75I have to say I'm a little hard pressed to see bias in this. As Paul Detrick notes, Smith was setting up Revell to make her point that we ought to adjust our withholding so that we aren't getting back huge refunds. Out of context, Smith's line sounds snooty, but it really isn't.
Many morning show interviews are not as spontaneous as they may seem. The producers feed the hosts talking points, and the hosts pose questions to insure that those points are covered.
When you put the clowns in charge, don't be surprised when a circus breaks out.
"I know a lot of people who
April 12, 2008 - 02:58 ET by ckc1227"I know a lot of people who let the government hold the money so they
can 'go big' at Christmas, file their return immediately after getting
the W-2 and use the money to pay off the Christmas bills. If they take
the money monthly it's gone monthly and they know it."
I'd be willing to bet many people don't even know it was their money in the first place, believing instead that it's the government giving them a check just for the heck of it.
“One of the great things
April 13, 2008 - 10:03 ET by River Dog“One of the great things about being governor is you get to take taxes away from people and then give it back to them and they’re happy to have it back. Is this a great job or what?”
TN Gov. Phil Bredesen
Tax refunds ARE WAY TOO HIGH!!
April 14, 2008 - 15:01 ET by bigjonTax refunds ARE WAY TOO HIGH!! and heres why. As proper citizens it appears none of you are aware of the giant tax refund farce of the so called lower class. I have encounted thousands of customers who make less than 15k per year and through liberal loopholes recieve THOUSANDS of dollars in refunds that they dont pay in. MY sister paid in like $800 and recieved $6400. This is legal and common but it is still wrong and immoral.