Tax Refunds Aren't Always A Good Thing
16 August 2009
One of my friends has just posted a comment on Facebook. He's excited because he's getting a $200 tax refund. He checked his tax details via a company that estimates your tax liability for each year, and then files a tax return if you are due a refund. My friend says that it is the "easiest $200 I ever made.. in 10 mins..."
Have I got news for him! That's *not* the easiest $200 he's ever made. That $200 was made in a job that he hates. And it would have taken him two days to earn that money. To slap him in the face even more, he leant the money to the government as an interest-free loan. Yes - the politicians and bureaucrats up in Wellington have been using $200 of my friend's money to help push their own agendas and have given him nothing in return. And my friend is happy because they're finally returning the money to him!
I like my tax returns better. They usually show that I owe the government money. This means that I have received an interest-free loan from the government. And because the amounts are usually pretty small, they get written off. Now, that makes me smile!