this post was submitted on 23 Feb 2025
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Isn't it actually better to owe rather than have a refund? Because if they owe you, then that means they over-withheld from you paychecks throughout the year and its essentially the government borrowing money from you without any interest.
I actually wish I could do this in Australia, for the reasons you mention (from a self-interested point of view).
I'm glad tax witholding is mandatory here though, because the government has to pay for stuff throughout the year, on services which we all benefit.
And it reduces the number of people who have illogical emotional reactions on having to pay taxes. (Much less resistance when you get a touch back, than have to pay more)
We do also pay taxes for stupid shit, like our tribute of $300 B AUD to the US for submarines. But alas, such is government spending. We can't all agree what's actually good.
I look at it like a non-voluntary piggy bank. I set the amount I'm going to withhold from every pay check, and anything over, gets given back. Sure it's interest free but if you look at an actual bank, interest rates on that money sitting in a savings account is pennies. And if you're someone who is bad at not spending your money, having it held for you with no real way to withdraw it is helpful when budgeting.
Besides, it's easy to over pay, it's pretty difficult for most people to net zero on tax payments without ending up owing money. And the amount you owe, could be something you hadn't budgeted for. I owe $450 this year. I don't really know where I'm getting that money. Most people will be less happy owing money than over paying and getting a refund.