Why Are Tax Payments So Instant If Refunds Are So Slow?
When it comes to my taxes, I've always tried to just keep things as simple as possible.
I always e-file single-zero and opt for the standard deductible. Not that I have deductions that would otherwise qualify for an amount larger than the standard deductible, it's where I've always been cast-off to in the little tax book.
If you're anything like the average Oklahoman, odds are you either received a little back or broke even with the federal government and somehow have found yourself in debt to the state. I'm getting my usual less-than-$100 back from federal, but also paying my usually $2 to Oklahoma... and that's where the curious things happen.
Within twenty-four hours of e-filing my taxes, that $2 came out of my checking account. Normally quick and prompt service is what we as Americans not only expect... but I have a few friends that are getting refunded money back from Oklahoma... funds that have been expected for weeks now.
Same story with the federal government... I'm waiting on that $78 refund for weeks now, while the fed hit at least three friends' accounts for their taxes owed almost instantly.
How can one body of government be so efficient yet also slow in the same aspect of duty?
It's a financial trend that plagues our country...
Example: If you walk into a store and purchase something, that money is instantly gone out of your account... If you return it for a refund, it always takes a few days for that money to show back up. It's the same whether you're shopping local or on some internet conglomerate website.
I always believed it was because, especially these days where money transfer is so instant from any digital platform, businesses will hold onto your money a few days to earn some sort of interest off of it before returning it. I don't know if it's true, but it makes logical sense.
Perhaps the governments, state and federal, are all doing the same thing. It may not seem profitable to the individual that earns 1.3% on an average value of their checking account if all terms are met... but if the IRS can earn a quarter of one center per dollar on billions, it adds up... and like the Amazon tax revenues the City of Lawton is paid regularly, it's probably hush-hush and super-secretive how it works...