Comments on: Do Taxpayers Behave Rationally? http://www.nicholls.edu/bastiatsbastions/2006/03/22/do-taxpayers-behave-rationally/ What is seen and what is unseen. Mon, 23 Jan 2012 16:26:45 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Welsch http://www.nicholls.edu/bastiatsbastions/2006/03/22/do-taxpayers-behave-rationally/comment-page-1/#comment-615 Welsch Wed, 29 Nov 2006 22:14:38 +0000 http://www.nicholls.edu/bastiatsbastions/2006/03/22/do-taxpayers-behave-rationally/#comment-615 Federal government takes half of America’s paycheck towards taxes. Everything you buy has a tax. Some people can not wait for refund time from the government. Plan out what they are going to buy or how they are going to spend their money. Is it really a refund? Not really according to these sources. Majority of the time we end up owing the federal government money. Federal government takes half of America’s paycheck towards taxes. Everything you buy has a tax. Some people can not wait for refund time from the government. Plan out what they are going to buy or how they are going to spend their money. Is it really a refund? Not really according to these sources. Majority of the time we end up owing the federal government money.

]]> By: Dameyel Welsch http://www.nicholls.edu/bastiatsbastions/2006/03/22/do-taxpayers-behave-rationally/comment-page-1/#comment-612 Dameyel Welsch Wed, 29 Nov 2006 21:10:17 +0000 http://www.nicholls.edu/bastiatsbastions/2006/03/22/do-taxpayers-behave-rationally/#comment-612 The federal government takes half of America's paycheck towards taxes. Everything you buy has a tax. Some people cannot wait for refund time from the government. They plan out what they are going to buy or how they are going to spend their refunds. Is it really a refund? Not really according to these sources. In my opinion, I believe the majority of the time we end up owing the federal government money. The federal government takes half of America’s paycheck towards taxes. Everything you buy has a tax. Some people cannot wait for refund time from the government. They plan out what they are going to buy or how they are going to spend their refunds. Is it really a refund? Not really according to these sources. In my opinion, I believe the majority of the time we end up owing the federal government money.

]]> By: Aaron Ayme http://www.nicholls.edu/bastiatsbastions/2006/03/22/do-taxpayers-behave-rationally/comment-page-1/#comment-171 Aaron Ayme Mon, 27 Mar 2006 01:29:40 +0000 http://www.nicholls.edu/bastiatsbastions/2006/03/22/do-taxpayers-behave-rationally/#comment-171 My dad, a banker, read this article and turned a few shades of purple. He also would like to receive a fraction of taxpayers’ paychecks and return the money with interest come April 15. This is a no brainer. Withdraw only the tax amounts you need to break even, pad the amounts a little if you must, and save or invest the extra portion you would normally give to the IRS. With a little planning and discipline, you could have a nice little nest egg earmarked for some special future goal. Imagine if this nest egg remained untouched for several tax seasons. Of course, such financial advice would probably fall on deaf ears for the audience most targeted on this tax rationale – low-income families who can afford to forfeit $100 plus outrageous interest to get a refund 10 days early. My dad, a banker, read this article and turned a few shades of purple. He also would like to receive a fraction of taxpayers’ paychecks and return the money with interest come April 15. This is a no brainer. Withdraw only the tax amounts you need to break even, pad the amounts a little if you must, and save or invest the extra portion you would normally give to the IRS. With a little planning and discipline, you could have a nice little nest egg earmarked for some special future goal. Imagine if this nest egg remained untouched for several tax seasons. Of course, such financial advice would probably fall on deaf ears for the audience most targeted on this tax rationale –
low-income families who can afford to forfeit $100 plus outrageous interest to get a refund 10 days early.

]]> By: Jim Heney http://www.nicholls.edu/bastiatsbastions/2006/03/22/do-taxpayers-behave-rationally/comment-page-1/#comment-160 Jim Heney Thu, 23 Mar 2006 13:31:06 +0000 http://www.nicholls.edu/bastiatsbastions/2006/03/22/do-taxpayers-behave-rationally/#comment-160 'Forced savings', 'fat refund', boy has the Fed done a great job of borrowing money interest free from the people. Sure the people would benefit more so if they were to put that money into a savings account through automatic direct deposit, but it doesn't work that way. We all look forward to the possibility of a refund, and make plans on how to spend the money before it comes in. Only in the last two years have I received a refund from my taxes and at best it wasn't even enough to make any large purchases or go on an extravagant vacation. The fed definately has a good thing going with being able to borrow up money interest free. "The extra withholding gives the government an interest-free loan worth more than $10 billion a year, equal to about $100 per tax return." I just wish that I could get in on just one percent of that action! ‘Forced savings’, ‘fat refund’, boy has the Fed done a great job of borrowing money interest free from the people. Sure the people would benefit more so if they were to put that money into a savings account through automatic direct deposit, but it doesn’t work that way.

We all look forward to the possibility of a refund, and make plans on how to spend the money before it comes in. Only in the last two years have I received a refund from my taxes and at best it wasn’t even enough to make any large purchases or go on an extravagant vacation.

The fed definately has a good thing going with being able to borrow up money interest free.

“The extra withholding gives the government an interest-free loan worth more than $10 billion a year, equal to about $100 per tax return.”

I just wish that I could get in on just one percent of that action!

]]> By: Patricia Hutchinson http://www.nicholls.edu/bastiatsbastions/2006/03/22/do-taxpayers-behave-rationally/comment-page-1/#comment-58 Patricia Hutchinson Thu, 23 Mar 2006 02:10:39 +0000 http://www.nicholls.edu/bastiatsbastions/2006/03/22/do-taxpayers-behave-rationally/#comment-58 I am always astounded about Americans using their tax refund as extra money coming into their life. If they only realized the principle of compounding and how much they are at risk of loosing. If the average American would only realize the freedom of savings and "getting ahead" would empower them. I am always astounded about Americans using their tax refund as extra money coming into their life. If they only realized the principle of compounding and how much they are at risk of loosing. If the average American would only realize the freedom of savings and “getting ahead” would empower them.

]]> By: Norbert http://www.nicholls.edu/bastiatsbastions/2006/03/22/do-taxpayers-behave-rationally/comment-page-1/#comment-57 Norbert Wed, 22 Mar 2006 23:17:24 +0000 http://www.nicholls.edu/bastiatsbastions/2006/03/22/do-taxpayers-behave-rationally/#comment-57 Trust Me!!! Trust Me!!!

]]> By: chad http://www.nicholls.edu/bastiatsbastions/2006/03/22/do-taxpayers-behave-rationally/comment-page-1/#comment-54 chad Wed, 22 Mar 2006 21:06:21 +0000 http://www.nicholls.edu/bastiatsbastions/2006/03/22/do-taxpayers-behave-rationally/#comment-54 While I am not sure this while make NM totally happy, a graduate student at Clemson was doing research on what he called "offsets". In some cases and in some states (I believe Iowa), if a person owes money (say for back child support payments), the state can confiscate (offset) the tax refund of the tax payer and transfer the refund directly to the person to whom the child support payments are owed. Economic theory would predict that upon becoming aware of the state's ability to snatch their refund, that the cost of having a refund increases dramatically for the tax payer who is likely to be offset, and thus the size of the refund should decrease. The student's research shows that indeed there is a singificant decrease in the size of refunds for these people, controlling for changes in income, etc. Perhaps NM would still not like that there is any positive refund. I am due a fat refund this year, but I am not so sure I trust NM! --CT While I am not sure this while make NM totally happy, a graduate student at Clemson was doing research on what he called “offsets”. In some cases and in some states (I believe Iowa), if a person owes money (say for back child support payments), the state can confiscate (offset) the tax refund of the tax payer and transfer the refund directly to the person to whom the child support payments are owed.

Economic theory would predict that upon becoming aware of the state’s ability to snatch their refund, that the cost of having a refund increases dramatically for the tax payer who is likely to be offset, and thus the size of the refund should decrease. The student’s research shows that indeed there is a singificant decrease in the size of refunds for these people, controlling for changes in income, etc. Perhaps NM would still not like that there is any positive refund.

I am due a fat refund this year, but I am not so sure I trust NM!

–CT

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