Tax(ing) season
Miki, over at Leadership Turn, tagged me and asked what I will do with my tax refund. This obviously has nothing to do with my usual topics. Although, strangely enough the next meeting of the Bay APLN has been titled “Taxing Agile”.
Let me start with two notes. First this refund only applies to US tax payers. In most other countries, don’t expect to get any money back. Second, whatever you with your refund, given the poor shape of the US economy, it will be good for the country and quite possibly for the world. Paying down debts and saving are good as it frees some cash for banks to stay in business. Spend and it will help businesses stay afloat.
To link this back to agile subjects, let’s remember that, in a well designed tax scheme, only those who can contribute are taxed. Moreover they are only taxed according to the level they can contribute to but only at a level that encourages them to be able to contribute more. In such a well established tax system contributions grow as well as the well being of contributors. Now I think about it, it really is similar to how companies work. Typical teams try to over tax their members until they have nothing more to give. Agile teams tax their members less to encourage a continuously growing return.
I kind of wonder what a refund means in that case ? Is you were too taxed ? Or that you did not produce as much as anticipated ? I will let my valued readers answer this.
Meanwhile I will answer the original question. As far as I am concerned, it will go into the savings category, most probably under the college fund header.
Alas, as I do not know any american blogger well enough to tag them, I am unable to fulfil the Meme. Oh well… I need to network more !
March 26th, 2008 at 4:52 am
OK, Denis, I’ll bite. What country taxes in accordance with your scenario? It certainly isn’t the US.
March 26th, 2008 at 4:53 am
Oops, I forgot to check the follow-up box.
March 26th, 2008 at 1:49 pm
Well here is the trick: generally that is what the income taxes try to achieve but it is a difficult balance to strike for each tranche of revenue. It also depends very much on the country (Scandinavians may accept more taxes than Americans), environment (socio-economic) and expectations of how the taxes are spent (welfare, education, health, military to pick hot campaign topics).
It is also important to consider the estate/inheritance tax in this scenario.
I am afraid that a lot of country fail to achieve the perfect balance and to be fair it is very difficult to achieve given its dynamic nature. But, to be honest, I think the US fails more on the spending side, especially under the Bush administration.
March 27th, 2008 at 2:11 am
Denis, the US fails in far more than spending too much. It also fails miserably in terms of any kind of fairness, considering that a large number of major corporations pay nothing as do the ultra-wealthy, while the middle class and below pay far more relatively speaking.
Respond and I’ll let you know if your widget works:)
March 27th, 2008 at 3:14 am
Well, I focus on the peculiar choice of spending: war over healthcare or education.
Yes it is unfair that large corporations do not pay taxes. It is even more unfair that ultra-wealthy escape it (hence in particular my remark on estate tax). If I escape the thought the refund I would get if these guys were paying more, I wonder if it is harmful.
Well, it is on many different levels but not as much and as immediately as the monthly billions to support the armed forces at war.
So does it work ? The widget I mean
March 27th, 2008 at 5:56 pm
‘Peculiar” isn’t the adjective I’d use—disgusting, idiotic, obscene, insane—all seem more accurate. Large corporations and the ultra wealthy have never paid their “fair share” and I doubt they ever will.
No question that the monthly spending on the war, and the non-wars in places such as Afghanistan, is catastrophic to the American people, as is the more than 4000 who’ve been killed.
But heck, the people suffering here don’t fund political campaigns or help get politicians elected, so they don’t really count. Got to keep those priorities straight.
And no, the widget isn’t working (I checked it again:)
March 28th, 2008 at 1:10 am
Oh dear, I was trying to use diplomatic language…
Damn ! (for the widget).
March 30th, 2008 at 5:08 am
That’s OK, I was being diplomatic, too. If I wasn’t my comments might bring Homeland Security down on our doorstep:)
The widget still doesn’t work. I’ll check it again.