Many Urban Poor File Their Taxes Early, Use Rapid Refunds
An interesting blog from my Urban Institute colleague Brett Theodos on the use of refund anticipation loans and refund anticipation checks among low-income tax filers:
It’s tax day, and gauging by past years, nearly 20 percent of us have yet to file. But something very different is going on for low-income families. Many were among the first to file, even giving up 5 percent of their refund to get their money sooner. These families relied on Refund Anticipation Checks (RACs) and Refund Anticipation Loans (RALs), controversial financial products (more)...
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The poor are always targeted for exploitation. It is expensive to be poor.
More accurately, it’s expensive to have limitations of the sort that tend to result in poverty. Poverty is a result of various problems, not their primary cause. Explicitly mentioning those various problems is taboo; therefore people tend to use the code word “poverty” instead.