With tax season starting as W-2s come out and the IRS April 15th filing deadline approaching, talk turns to what will Americans do with their tax refunds. Last year's average refund came out to $2744 and Millennials are more likely to expect tax refunds due to taxes on paychecks throughout the year. If the article is accurately predicting a rising trend to save tax returns, this could indicate a decrease in MPC and a corresponding increase in MPS.
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It doesn't surprise me that there are predictions for tax return saving to increase. People may have incentives to save their tax returns, or they may have low economic expectations for the future. If this prediction is accurate that would indicate that consumer confidence is currently low. This could potentially have a negative effect of the economy.
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