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What will businesses do next year?

Every year, tax return season is a godsend for businesses. People plan for months in advance to use their tax returns to either pay off their credit card Christmas shopping so they can use them again, or to use them outright for big ticket purchases.
The new "tax reduction" where less money will be taken out of your check each pay period will make your tax refund next year that much smaller, or it will even leave you owing money instead of a refund. There are also significant reductions in deductions you will be allowed to take next year.
So with millions of people getting refunds that are at least $500 lower, and with millions more getting no refund at all and owing instead, how many businesses are going to go under without the infusion of cash that goes with tax season? And then aside from that, how many people that are not used to or expecting to owe will end up defaulting on other bills?

 
NotPanicking

Asked by NotPanicking at 7:18 PM on Mar. 5, 2009 in Politics & Current Events

Level 51 (421,172 Credits)
This question is closed.
Answers (14)
  • They will probably ask for more bailouts!
    lil_angel00

    Answer by lil_angel00 at 7:38 PM on Mar. 5, 2009

  • I am already stressed out enough with this economy. I will deal with that situation when and if the time comes.
    Anonymous

    Answer by Anonymous at 7:22 PM on Mar. 5, 2009

  • Uhm....yes, that's the whole idea behind Obama's new tax evasion and fraud department. Many Many people who never owed before will now owe taxes. And the IRS is the most ruthless collection agency in the United States. Like I said the other day, the loss of homes and cars due to confiscation by the IRS for non payment of taxes, penalties and interest will make the subprime problem seem like kids play. People need to wake up and realize that Obama wants your money, and if he doesn't get it, he'll take your possessions. Wake up people, wake up.
    akinbottom2

    Answer by akinbottom2 at 7:27 PM on Mar. 5, 2009

  • Ahh here we go again with another post turning into Obama bashing.
    Anonymous

    Answer by Anonymous at 7:33 PM on Mar. 5, 2009

  • They'll fire all their minimum wage workers.
    Anonymous

    Answer by Anonymous at 7:36 PM on Mar. 5, 2009

  • leave it to instant paranoid Obama bashing. we get you don't support the President akin. you mention it in every single thread. it is what it is. he's our President now. you're not happy about it. we get your point. 8 long years Republicans had a try at it and failed. mission accomplished. FAIL. wake up, wake up! *snort*
    Anonymous

    Answer by Anonymous at 7:55 PM on Mar. 5, 2009

  • So many responses, so few answers to the question. No wonder you post anon.
    NotPanicking

    Answer by NotPanicking at 7:56 PM on Mar. 5, 2009

  • That's a very good question, akin. I have a friend who counts on her tax refund every year to dig her out. (She is not a good money manager.) I doubt she realizes her refund will shrink. She will spend the extra money in a blink, and then be stuck next year.

    What about those who owe every year? They will get extra money now and owe even MORE money next year!
    mancosmomma

    Answer by mancosmomma at 7:59 PM on Mar. 5, 2009

  • Can I get a source? The way I have read it works, your total tax liability is being decreased. That will not reduce your refund. It's not a loan. Also, anyone can get extra money withheald at any time.
    stacymomof2

    Answer by stacymomof2 at 8:23 PM on Mar. 5, 2009

  • I have no clue. We have never lived for tax season. We have our withholdings set so we have more of our money all year. Seems stupid to wait until April and let the Government have it and earn interest. I am sure they will survive. Christmas is actually when business get the infusion of cash. Credit card companies and other lenders are who will hurt if there is not influx of cash. Those who get the 10k refunds back and don't pay taxes or get is all back and then some will still get all of theirs. It is people in my tax bracket that will owe reason we will put back that 20 buck a pay period extra. So much for it being a stimulus.lol
    Anonymous

    Answer by Anonymous at 8:26 PM on Mar. 5, 2009

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