‘Death and taxes,’ they say. Get in line.
Yet you don’t have to be another drone blindly paying Uncle Sam. Here’s one quick way to manipulate the tax scheme to your advantage, legally. I manage the marketing for accountants, lawyers, and financial planners, but as always, check with your counselors before you do anything.
Ratified in 1913, the Sixteenth Amendment overturned a previous Supreme Court ruling and allowed the government to start collecting personal income tax. It has since turned into a passive income stream for the government. Now, it can be one for us.
Wonder why the wealthy flock to Florida, Texas, Nevada, New Hampshire, South Dakota, Tennessee, Washington, Wyoming and Alaska? No personal income tax.
Take a look at your paycheck. There’s a gross difference between what your boss promised you, and what you take home. Most likely, when you got the job, you signed all the papers according to typical HR protocol, opting for your employer to withhold your income tax.
Withholding the taxes on your income (plus some extra for your needs) makes your life easier. You only have to file your taxes by April. A few weeks later, your refund check makes for a nice mailed gift. America’s “refund time” has turned into an annual economic boost around the world.
We all get a mood boost when we find a ten spot in our pair of jeans. Multiply that effect a few times, and that’s what the refund check elation is all about. But the happiness is even more absurd.
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