Word on the street is there’s a delay in folks getting their Federal tax return. A friend of mine filed for his parents back in February, and as of writing they are still waiting for their hard-earned cash from Uncle Sam. Good news is they are not the type to desperately need their tax return to balance the personal budget. However, for those who do, they must be pretty annoyed with our government.
Sir Elon Musk must have DOGE-d a bit too hard and got rid of a few too many IRS workers.
Maybe this will be good impetus to incentivize people to adjust their tax withholdings so they end up owing the IRS instead. We’re all familiar with the pithy saying by now: don’t lend the government money interest free. And if it’s difficult for you to come up with the sum to pay Uncle Sam at the end of the year, then I think you need to first look at how you’re spending your money. Good news for pay-in-four fans: the IRS already offer payment plans!
I end up owing money every tax year, which is as it should be. 2025 I owed a bit more because I sold some securities. What I forgotten about was that the State of California treat investment gains as ordinary income, which is absolutely insane. It’s already bad enough the Federal Government takes 15% of the proceeds, but California wants to wet their beak so much that it is permanently submerged. No wonder people are leaving the state, or carry bank accounts in tax havens.
Bad news for me I don’t make nearly enough money to resort to such financial trickery. It’s truly the middle class that gets screwed. The 1% may pay the most taxes, but the law of large numbers means what’s leftover is still way more than anyone can ever need. The government taking 5 million out of my 10 million still leaves me with my own 5 million. At the same percentage cut, $50,000 out of $100,000 really hurts.
La roux.