Author: Nick Pagano
Topics: News, Industry Ideas
Here’s another lie “THEY” tell us: "it’s good to get a tax refund." Really? Let's look at some numbers— according to IRS.gov, 83% of Americans got tax refunds in 2016, with the average size being $3,100. Is it a coincidence that according to bankrate.com, 76% of Americans live paycheck to paycheck? I wonder, could there be an overlap? By my calculation, if you are living paycheck to paycheck there is little to no money being set aside for retirement, vacations, catastrophes, etc...
So who is pushing this lie and why?
Why the push of the big tax preparers to get the refund if it is not a good long-term strategy? Maybe I just answered my own question— short term is the focus. H&R Block, the largest tax preparer, did about $3 billion in revenue last year and the company spends roughly $150 million in media annually.
“‘We’re very much targeting millennials with these big and bold promotions,’ said Kathy Collins, CMO of H&R Block, who noted the 2014 Hipster Tax Crisis campaign targeting millennials through digital video. It’s the millennials who ‘tend to be early-season filers because they’re generally more eager to get their tax return.’”
Speaking of H&R Block, they have had some "interesting" experiences recently. According to
Wikipedia, "In August 2005, H&R Block announced that it had overstated its earnings for 2003 and 2004 by $91.1 million. The company stated that it had ‘insufficient resources’ to identify and report complex transactions in its corporate tax accounting. On February 23, 2006, the company said in its quarterly results that it had miscalculated its own state income taxes for 2005 and 2004, and that it owed an additional $32 million in back taxes.”
And these are the guys giving the advice to the average Americans?
Gainplan LLC is a Registered Investment Adviser. This blog is solely for informational purposes and not a solicitation to invest. Advisory services are only offered to clients or prospective clients where Gainplan LLC and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Gainplan LLC unless a client service agreement is in place. Please contact a financial advisory professional before making any investment.
Gainplan LLC provides links for your convenience to websites produced by other providers or industry related material. Accessing websites through links directs you away from our website. Gainplan LLC is not responsible for errors or omissions in the material on third party websites, and does not necessarily approve of or endorse the information provided. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites.