7 ms·

> Out-of-pocket medical spending jumps once the money hits people’s bank accounts. It is a bad thing that tax withholding is one of the few ways Americans can

by kartan 8y ago

> Out-of-pocket medical spending jumps once the money hits people’s bank accounts. It is a bad thing that tax withholding is one of the few ways Americans can have savings. When you live check to check this can be your only option.

briandear 8y ago
How is it the only option? If withholding is less, what’s stopping people from saving the reduction? A refund is essentially an interest free loan repayment from the government. Refunds should ideally be zero.
- koolba 8y ago
  > How is it the only option? It’s not but it’s a lot easier for many people if they don’t realize they have the money. > If withholding is less, what’s stopping people from saving the reduction? Reality. It’s no different then walking around town with a couples $20 bills vs walking around with your pockets empty. Sure you could just not spend any of it but it’s a hell of a lot easier if you don’t even have the option. Not having cash on hand and being forced to make due with less is surprisingly effective.
  - vuln 8y ago
    >Not having cash on hand and being forced to make due with less is surprisingly effective. This is exactly what the Democrats want and push with their agenda. They would rather raise taxes and make every one poor in order to feed into a larger government. Government programs that sound good, but don't actually work out on paper. By keeping the masses poor it's easier to sell them on "social programs" that would assist the poor but never really do.
    - krapp 8y ago
      Social programs do help the poor. If not for food stamps and free school lunches, many of the poor would simply be left to starve to death. Indigent healthcare, federal student loans, welfare, housing assistance, all of it helps the poor, objectively. And I would be thrilled to pay more taxes if it meant I could go back to college or have health insurance without risking a lifetime of debt either way.
  - jimmy1 8y ago
    It's an extremely short term solution to make everyone feel happy and warm inside without any long term results. The lack of impulse control won't sudden vanish once the refund arrives, and they will be back in that situation again a few short months after.
    - kartan 8y ago
      > The lack of impulse control won't sudden vanish once the refund arrives I see why you reason like this as the reality seems counter-intuitive. The cause is poverty the effect is harder times taking economic sound decisions. Not the other way around. One of the many articles about the topic: https://newrepublic.com/article/122887/poor-people-dont-have-less-self-control https://newrepublic.com/article/122887/poor-people-dont-have...
      - jimmy1 8y ago
        Not what I meant to come across as saying. Increased self control can help us all, and it can especially help poor people get out of debt and poverty.
- rgbrenner 8y ago
  EITC and tax credits. The poor are not just receiving a refund on withholdings.
Mindless2112 8y ago
That tax withholding is the only way that many Americans manage to save speaks more to a lack of self-control than anything else. If Uncle Sam can save a lump-sum for you by deducting from your paycheck, you could have done the same (in fact, better) with a bit of resolve and a bank account.
- jlebar 8y ago
  Not necessarily -- perhaps you're in debt day-to-day. This is the reality for many Americans.
- kartan 8y ago
  > That tax withholding is the only way that many Americans manage to save speaks more to a lack of self-control than anything else. I understand that it may seem so. But, when there is millions of Americans in that situation then it is a systemic problem not a personal one. There is a lot of on-line resources about this topic. e.g. https://www.google.com/search?q=the+cost+of+being+poor https://www.google.com/search?q=the+cost+of+being+poor
  - shams93 8y ago
    Yeah there was a great breakdown of this when the representative from Irvine, California grilled CEO Jaimie Dimon, a bank teller who lives in Irvine makes $15 an hour, basically such a person if they have their own apartment will be forced to choose between having food and having a phone. We have kept salaries frozen for so many decades that we have impoverished the majority of working people to a ridiculous level. Asking people to go get more education is a joke when PHD's often live in their vehicle or live within homeless shelters as part time adjunct staff.
    - anbop 8y ago
      Why would you expect that a bank teller has their own apartment? Your own apartment isn’t some kind of birthright. I had roommates until I was 27.
deleted 8y ago
[deleted]

by kartan 8y ago

briandear 8y ago

How is it the only option? If withholding is less, what’s stopping people from saving the reduction? A refund is essentially an interest free loan repayment from the government. Refunds should ideally be zero.

koolba 8y ago
> How is it the only option? It’s not but it’s a lot easier for many people if they don’t realize they have the money. > If withholding is less, what’s stopping people from saving the reduction? Reality. It’s no different then walking around town with a couples $20 bills vs walking around with your pockets empty. Sure you could just not spend any of it but it’s a hell of a lot easier if you don’t even have the option. Not having cash on hand and being forced to make due with less is surprisingly effective.
- vuln 8y ago
  >Not having cash on hand and being forced to make due with less is surprisingly effective. This is exactly what the Democrats want and push with their agenda. They would rather raise taxes and make every one poor in order to feed into a larger government. Government programs that sound good, but don't actually work out on paper. By keeping the masses poor it's easier to sell them on "social programs" that would assist the poor but never really do.
  - krapp 8y ago
    Social programs do help the poor. If not for food stamps and free school lunches, many of the poor would simply be left to starve to death. Indigent healthcare, federal student loans, welfare, housing assistance, all of it helps the poor, objectively. And I would be thrilled to pay more taxes if it meant I could go back to college or have health insurance without risking a lifetime of debt either way.
- jimmy1 8y ago
  It's an extremely short term solution to make everyone feel happy and warm inside without any long term results. The lack of impulse control won't sudden vanish once the refund arrives, and they will be back in that situation again a few short months after.
  - kartan 8y ago
    > The lack of impulse control won't sudden vanish once the refund arrives I see why you reason like this as the reality seems counter-intuitive. The cause is poverty the effect is harder times taking economic sound decisions. Not the other way around. One of the many articles about the topic: https://newrepublic.com/article/122887/poor-people-dont-have-less-self-control https://newrepublic.com/article/122887/poor-people-dont-have...
    - jimmy1 8y ago
      Not what I meant to come across as saying. Increased self control can help us all, and it can especially help poor people get out of debt and poverty.
rgbrenner 8y ago
EITC and tax credits. The poor are not just receiving a refund on withholdings.

Mindless2112 8y ago

That tax withholding is the only way that many Americans manage to save speaks more to a lack of self-control than anything else. If Uncle Sam can save a lump-sum for you by deducting from your paycheck, you could have done the same (in fact, better) with a bit of resolve and a bank account.

jlebar 8y ago
Not necessarily -- perhaps you're in debt day-to-day. This is the reality for many Americans.
kartan 8y ago
> That tax withholding is the only way that many Americans manage to save speaks more to a lack of self-control than anything else. I understand that it may seem so. But, when there is millions of Americans in that situation then it is a systemic problem not a personal one. There is a lot of on-line resources about this topic. e.g. https://www.google.com/search?q=the+cost+of+being+poor https://www.google.com/search?q=the+cost+of+being+poor
- shams93 8y ago
  Yeah there was a great breakdown of this when the representative from Irvine, California grilled CEO Jaimie Dimon, a bank teller who lives in Irvine makes $15 an hour, basically such a person if they have their own apartment will be forced to choose between having food and having a phone. We have kept salaries frozen for so many decades that we have impoverished the majority of working people to a ridiculous level. Asking people to go get more education is a joke when PHD's often live in their vehicle or live within homeless shelters as part time adjunct staff.
  - anbop 8y ago
    Why would you expect that a bank teller has their own apartment? Your own apartment isn’t some kind of birthright. I had roommates until I was 27.

deleted 8y ago

[deleted]