Thread by @EconoTodd

My $0.02 on the tax refund kerfuffle. While I agree the story has been misdiagnosed as a supposed tax increase and that is a bad misdiagnosis, I’ll try to explain why folks are so tied to those refund checks. 1/n

I was quite poor growing up. My father was a single parent, no college degree, and we had to move from TX to TN when my mother left and never came back one day. He was financially ruined by the experience. 2/n

He’s no accountant, nor did he have the time or know-how to adjust his witholdings to eliminate his tax surplus. He was a hard working single father doing everything he could day in day out to raise me. The tax refund was a refuge. 3/n

Christmas and birthday gifts, but more importantly large expense like car repairs or medical procedures, we often put off until early March when he’d get the refund check. Overpaying his taxes were a form of savings. 4/n

The tax refund was piece of mind. He wasn’t computing time value of money, he was working 10 hours a day, going to my school and sporting events, and dealing with his own personal life. 5/n

And I also suspect it was a form, even if subconsciously, of self control. My father had not made great financial decisions. Keeping that pool of money set aside meant he didn’t have to worry about trying to save it. 6/n

And privileged academics (like myself) can point out the suboptimal nature of his decisions, but I can tell you that everything was suboptimal for us. There simply wasn’t the time or mental capacity to worry about the efficiency of his tax withholdings. 7/n

bUt ThAtS aN iNtErEsT fReE lOaN tO tHe GoVeRnMeNt!

So what?! Did you expect my father to take that extra $100 per month and invest it? Cause I’ll tell you right now, whether he saved that $100 or got the refund check, that money was ALWAYS already spent. 8/n

In an experience of financial insecurity, the tax refund is a salve. Call it an anchoring problem or point out it that people are stuck to their status quo all you want, but these are folks struggling. They don’t need your condescension. 9/n

And this goes for the morbid liberals dunking on folks for expecting refund checks. I’m sure most folks dealing with tax refund issues didn’t vote for Trump, and even if they did, the tax withholding issue was never fully explained to them or anyone. 10/n

In closing, all mention that I had a wonderful childhood. Don’t think I’m telling a sad story here, just providing context from my own experience. Those of us who got so stupid lucky that we’re paid to think should remember there is math and there is humanity. 10/10