4 ms·
This is a terrible idea because people are generally horrible with money. No automatic deductions means that you personally have to estimate and save up for you
by rolenthedeep 4y ago
This is a terrible idea because people are generally horrible with money. No automatic deductions means that you personally have to estimate and save up for your tax bill at the end of the year. You have to be able to set aside several thousand dollars and not touch it ever.
A lot of those people would spend that money instead, and then be unable to pay their taxes at the end of the year. This results in people borrowing money to pay taxes, which is really just an opportunity for lenders to take advantage of people.
Consider automatic deductions as deposits into an account you can't see or touch and is only accessible for taxes. That's pretty much exactly what most people would need to save for their taxes in the first place. Once your taxes are withdrawn from that account, you are refunded the difference.
- Consultant32452 4y agoThe idea that many people would wind up spending the money and not paying taxes is a feature, not a bug. Adding friction on tax collection and enforcement is the goal.
- rolenthedeep 4y agoI see. What, exactly, do you think this plan would solve?
- Consultant32452 4y agoI already told you in my first post. Payroll deductions are a psychological manipulation used against the public to separate payment from the perception of value. People don't "feel" paying their taxes every two weeks, and therefore are less able to consider the return on that value. Seeing money come into your account and then leaving is a very different emotional experience than less money coming in to begin with.