I was wondering why the government has to deduct taxes from us. Why can’t they set aside what they need to begin with? I think I don’t have an idea of how money truly moves…
In: 0
That’s exactly what they are doing – taking it from your paycheck and setting it aside to cover your tax liabilities.
Otherwise you’d have to do it yourself, and frankly most people would fail badly at that. The average person is just not very good with money, especially with maintaining long-term savings when they have immediate needs and wants.
The government deducting it up front makes our lives easier. Since we never even get it in the first place, there’s no way we could misappropriate it, either on purpose or accidentally or in a moment of weakness or desperation.
And also we don’t feel as bad when the tax bill comes due in the spring, because we’ve already paid most of it, or even overpaid and get a refund, which feels like getting free money, even though its ours.
Latest Answers