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> They care about this so much that if you owe a lot in taxes, you actually have to pay them in quarterly installments, so the Feds don’t have to wait a whole y
by zAy0LfpBZLC8mAC 8y ago
> They care about this so much that if you owe a lot in taxes, you actually have to pay them in quarterly installments, so the Feds don’t have to wait a whole year to get your money.
That's really not about interest, but about credit risk. If a tax payer goes broke, they don't want to lose a whole year of taxes.
- wutbrodo 8y agoThe time value of money (and thus interest) is in part by driven by the risk of the future payout not happening, so these aren't really separate phenomena.
- zAy0LfpBZLC8mAC 8y agoBut the interest the state is paying is not driven very much by the credit risk from individual tax payers.