Posts Tagged ‘income tax’

Saving Taxpayers Money by Replacing High-Interest Loans at Tax Time with Instant Refunds

Sunday, December 21st, 2008 by Al Lewis (alewis)

The biggest ripoff in consumer lending is the refund anticipation check. Tax preparers offer their clients +/- 90% of the value of the anticiated refund, on the spot, a very high implied APR. This posting shows how the government can replace this with loans at much better terms, get the money into people’s hands faster and — in conjunciton with the Stimulus Gift Card — even ofer MORE than the value of the refund in an immediate gift card. Economic stimulation AND profits for the government AND a windfall for consumers.

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