Starve the Beast

a href=”http://fromthemaenianum.wordpress.com/2009/05/10/hemorrhaging-especially-uncle-sam/”The Galt Effect on Uncle Sam: /a blockquoteThere are a thousand reasons why Federal receipts are down, but the one that is most interesting is the attitude towards government effect. Our attitude about how our government is doing can be good or bad, depending on how we side on the issues. If we feel that government is doing a good job, we’re more likely to prepare our tax returns and calculate our withholding based on an optimistic outcome (taking fewer risks). The reverse is also true: when we believe that the government is doing a bad job or mishandling our tax dollars, we will take riskier deductions on our tax return, as well as calculate our withholding in such a way as to prepare for a bad financial year (to hold back as much cash as possible), or with the intent to starve/punish the beast./blockquote