Friday, 23 November 2012

When a Tax Deferral Seems Fair

By Rob Sutter


Being the somewhat bitter person I can be at times, I didn't think very highly of using a tax deferral. I felt like everyone should follow the same sorts of rules when it comes to money and I still stand by that to a degree. However, I never truly though about the extenuating circumstances that could fall upon a person. They didn't mean for life to take a turn for the worst or even one that was simply unexpected, so I can understand now why this concept is used.

Families with only one parent to be had in them don't exactly have it easy. After all, the money is kind of slim with just one source of income to be had and paying for such aspects as education and food for the table is much harder than it has any right to be. Money is the issue to be had. A tax deferral may be utilized here in order to curb money pouring out for a while but what about those people who simply cannot work due to being much older? Organizations such as Savings2Income work to inform people on the semantics of retirement savings but who's to say everyone will follow the advice?

Retirement can be a difficult aspect to predict because not everyone is going to know when they should start to plan. The stock answer to be given is, "as soon as possible." It's never too early to plan for the future and when you become too old, you should be certain that a comfortable future is in your sights. If it's not, then you might find yourself utilizing a deferral before long. When you're unable to work and trying to put off paying taxes until the right amount of money comes in, nothing else seems as physically tasking.

I remember where my negative viewpoints of deferrals originated from and I have to point out those select few who abuse the system. Much like medical insurance or food stamps, they are meant to help those who can't help themselves but when they're not used for their intended purposes, that is simply wrong. Tax evasion is a crime and the line can indeed be crossed between evasion and deferral. It's these very people who taint the entire idea for everyone else.

As you can plainly tell, even now I still contain some gripes when it comes to referrals. However, you should know that my problems are only targeted towards those who play the system like a fiddle. I don't even know when my tirades about these certain people could end, especially when I think of those less fortunate who would use it well. Families which have single parents find themselves in the most trouble. Deferrals can be very helpful but not if there is crookedness behind the intended use.




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