• March 2006
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Tax confusion

At work today, a lady said that she liked getting paid weekly at a previous job. Another lady, said that she’d not like getting paid weekly because she’d have to pay more taxes.. but at least she’d get a bigger refund at the end of the year.

WHAT?

I asked her what she meant..since taxes are a percentage.. the same percentage is taken out whether you work 40 hours, 80 hours or 160 hours in a pay period.

She said that you pay more taxes if you get paid weekly.

This made sense to her.

She then explained that you pay less taxes if you buy things one at a time at the grocery store.. rather than a whole buggy-full of groceries at once.

I said.. well, yes, you pay more taxes when you spend more money since taxes are in proportion to the dollar amount spent.

She thought I was strange for saying this & said that I was wrong.

I’m not sure where she gets her ideas about taxes & how they work. She said I was being argumentative when I tried to explain it to her. I said, “If you get paid 100 dollars a week and pay 10% in taxes, it doesn’t matter if you get paid weekly and pay 10 dollars in taxes a week, or whether you get paid bi-weekly and pay 20 dollars every two weeks, or if you get paid every 4 weeks and pay 40 dollars in taxes every 4th week, it all is the same in the end.” She didn’t understand it.. at all. She still argued that with getting paid weekly, the taxes taken out are more.

After a few minutes, I quit trying to explain it. I was getting a headache.

If I go with her way of thinking, perhaps I should pay for the kids’ school lunches by the month instead of sending money for two weeks at a time.. so it will cost less… or no.. I got that backwards, didn’t I? I should send money each day, and that would make it cost less.

Or.. instead of filling up my gas tank once a week, I could put 2 or 3 dollars worth of gas in the car each day.. and save money that way… along with wasting a whole lot of time!

It’s funny how some people think, isn’t it?

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