Many taxpayers could be frugal with refunds
In the old days, when so many folks didn't have first-hand experience of pay cuts and layoffs, free-spenders might happily blow their tax-return refunds on a new spring wardrobe, a night out on the town, or a new TV.
But, alas, the old days are gone forever. In these penny-pinching times, people are more inclined to use their tax returns to pay off bills, according to CareerBuilder.com, a career website.
Chicago-based CareerBuilder said in a press release that it hired Harris Interactive to survey 5,231 US workers late last year, and 56 percent of respondents indicated that they plan to use their tax return to pay off bills; 78 percent added that they currently live paycheck to paycheck, up from 61 percent who said the same in May 2009.
"Workers’ wallets are still feeling the ripple effects of the past year," Rosemary Haefner, CareerBuilder's vice president of human resources, said in statement. "In addition to scaling back their investments and cutting back on expenses, workers are using their tax returns to help supplement their incomes. Our survey indicates that more workers plan to spend their refunds on everyday expenses than on savings or other items."