Banking With the IRS

Many people overpay their income tax on purpose so that they are guaranteed a refund from the IRS. The IRS likes this because they get an interest free loan. Well, it appears in the Netherlands that is not the case. The government will pay you 5 percent interest on any money you overpay. I would feel MUCH better about overpaying my taxes if that were the case here in the US. The problem for the Dutch is that they typically borrow at 3.25 percent instead of the 5 percent they pay if you pay too much tax.