Tax Refunds, Explained
If you don't understand our
governments' version of tax refunds (and you are not alone),
maybe this will help explain it:
50,000 people go to a baseball game, but the game was
rained out. A refund was then due. The team was about to mail
refunds when Congressional Representatives stopped them and
suggested that they send out refund amounts based on their
interpretation of fairness.
After all, if the refunds were made based on the price each
person paid for the tickets, most of the money would go to the
ticket holders of the most expensive tickets. That would be
unfair and unconscionable.
People in the $10 seats will get back $15, because they
have less money to spend. Call it an "Earned Income Ticket
Credit." However, this is a misnomer because people in these seats don't "earn" the credit at all. Rather, they qualify simply because it is concluded that they must need the money since they purchased an entry level ticket.
People in the $25 seats will get back $25, because that's
People in the $50 seats will get back $1, because they
already make a lot of money and don't need a refund. After
all, if they can afford a $50 ticket, then they must not be
paying enough taxes.
People in the $75 luxury seats will have to pay another
$50, because they have way too much to spend.
The people driving (or walking) by the stadium who couldn't
afford to watch the game will get $10 each, even though they
didn't pay anything in, because they need the most help.
Now do you understand? If not, contact your local Representative