Want an iPad with that Refund?
Tax day is bearing down on us which brings us into tax refund season. We are also in new season of gadget lust. This one is the iPad edition. I’m not receiving a tax refund, which is a good thing. (Why? Because it means I didn’t extend an interest-free loan to our money-sucking government.) I’m also not buying an iPad, also a good thing. (Why? Because it shows I’m not an Apple fanboy.)
I can’t generalize and call refund recipients “taxpayers” because almost half of U.S. households don’t pay income taxes. (Source) Many of the non-taxpayers will still receive refunds because of the plethora of refundable tax credits a/k/a income re-distribution channels that Congress is creating. It is misleading for a non-taxpayer to even refer to their check from the IRS as a “refund.” It’s actually a gift – from the real taxpayers. You are welcome. (Mr. ToughMonelyLove says with a tinge of sarcasm.)
Bankrate.com surveyed tax filers about their plans for their refund. 30% said they would pay down debt (good), 28% will save or invest (also good), and 26% will buy food or pay utility bills (what?). (Source)
I don’t trust that last 26% number. Do those refund recipients plan on eating more food during refund season? Will they be adjusting their thermostat to a more costly setting?
I think the “buy food with my refund” folks have already spent their refund, in anticipation of receiving it. Maybe they bought something they didn’t need. (An iPad perhaps?) This left them a little short in the “food” and “utilities” categories. That’s what I’m thinking.
But then Mr. ToughMoneyLove is a diehard cynic.
What do you think?