A trend among consumers in recent years has been to pay their taxes with a credit card. I know this is old news in a way, but whenever I see something about topic, I can't help but shake my head and wonder why!People are in so much debt these days (I won't even get into the whole subprime mess), why would you even think of paying your taxes with a card? Then again, I guess easy access to the credit probably is a good reason. You might not have the cash in your checking account to pay the government, so at least the card offers another out. I can understand that. I mean, who wants the Feds coming after them? But it's still difficult for me to come to terms with the concept.

So they pay their taxes with a credit card because they don't have enough to cover it in their checking accounts. Their IRS debt is satisfied, but now MasterCard or American Express has a nice running balance (with interest) to hold on to. So the people who pay their taxes this way still don't quite get out of their holes.

Metavante's Link2Gov division recently released results of a customer poll showing that the main reason people tend to pay their taxes via credit card is simple convenience. Plus, they figure if they can earn rewards points, they might as well make a miserable task somewhat enjoyable. Again, I suppose I can understand the reasoning these people use. But still, should the industry be encouraging this behavior? Should people pay their taxes via credit card? What do you think? Leave a comment or drop me an email.