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So if your withholdings went "down" $20 per month for a total of $240 for the year, then wouldn't that equal the "tax cut?"
Yet, a lot of people are seeing a "tax INCREASE" because they're paying MORE (taxes) than last year.
Their argument is that #1: Their pay didn't change. #2: Their withholding dropped $20 (SOLD AS THEIR NEW TAX CUT) then....... their return should be the same as last year. #3 Its NOT! Its FAR LESS. So they're saying, yes their tax was cut, but it was their tax "REFUND" that was cut. And that "CUT" in refund FAR EXCEEDED what they 'SAVED' in withholding cuts.
Say you and I go out for the same meal at the same restaurant, you get charged $60 and pay for it with a $100 bill, I get charged $50 and pay for it with 3 $20s.
Are you saying you're getting the better deal because you get $40 in change and I only get $10?
That's the conclusion people are coming to when focusing on refund amounts.
What was your tax liability under this law vs. what would your tax liability under the old law.
I ended up better off. I did adjust my withholdings last February to help balance the amount.
Many people seem to approach their home budget on autopilot. I seriously do not understand bouncing along in life, working for more then a third of it, and not seeming to care how to handle money.
The wealthy are laughing all the way to the bank and the "little people" are grousing about smaller tax refunds. Meanwhile, back at the ranch:
"The national debt surpassed $22 trillion for the first time on Tuesday (Feb 12), a milestone that experts warned is further proof the country is on an unsustainable financial path that could jeopardize the economic security of every American."
"The U.S. economy's estimated growth rate in the fourth quarter was slashed to 1.5% from 2.7% by the Atlanta Federal Reserve after declines in retail sales and inventories. "
The wealthy are laughing all the way to the bank and the "little people" are grousing about smaller tax refunds. Meanwhile, back at the ranch:
"The national debt surpassed $22 trillion for the first time on Tuesday (Feb 12), a milestone that experts warned is further proof the country is on an unsustainable financial path that could jeopardize the economic security of every American."
"The U.S. economy's estimated growth rate in the fourth quarter was slashed to 1.5% from 2.7% by the Atlanta Federal Reserve after declines in retail sales and inventories. "
Trump's tax cuts are unsustainable.
If we look at annualized (GDP) growth rates it tells a different story from the one you are indicating. For the 12 months preceding the election in 2016, the average annualized growth rate was 2.55%. If we look at the average annualized growth rate for the 24 months following the election of Donald Trump, the average annualized growth rate was 4.44%.
Feel free to compare unemployment rates for women, minorities, and overall unemployment and you'll see a distinct difference too between Trump's numbers and Obama's numbers. Sure, the national debt is increasing, just as it was under Obama, but that's primarily due to 2/3 of the entire budget being "entitlement" programs set up by previous Democrat administrations. Then, by the time we figure in money for the military budget and operations of the federal government, there are darn few places we can cut spending... or perhaps I should say there are darn few places the Dems would allow spending to be cut. If current political sound bites are any indication, the federal spending and deficit would skyrocket if Dems get control of the White House in 2020.
Real world situation here, not some internet BS. I finished my 2018 federal tax return 2 days ago. Compared to my 2017 taxes, my Adjusted Gross Income INCREASED almost 20% and my total federal taxes paid DECREASED by 13%.
I earned more money and paid less taxes. What's not to like about that?
I had $750 less withheld during tax year 2018 vs 2017 and got back $900 more in the refund than the prior year.
(This is almost entirely due to the increase in both the CTC amount and the amount that is refundable. AGI was ~40k both years, and have always taken the standard deduction.)
Last edited by happygeek; 03-02-2019 at 04:30 PM..
All this blather over something nearly anyone who paid attention at the time already knew; benefits of the so called "Tax Cut and Jobs Act" went to businesses/corporations and certain wealthy households.
Where everyone else fit into the scheme largely depended upon their particular household financial circumstances.
Don't know why so many are getting all hot and or acting surprised; DT,GOP,Mitch McConnell and Paul Ryan did what republicans have always done for decades; pass more "trickle down" tax policy. This had been the particular wet dream of Paul Ryan and Mitch McConnell for years; but long as Obama was president and GOP didn't command enough of majority it never stood a chance.
So now all those who voted DT and otherwise GOP into office can now either cheer or cry regarding their tax situation. Long as one or both remain in charge nothing is going to change absent the scheduled sunset provisions. If DT remains in WH and GOP holds their majority in senate come 2020, then there will be no sunset; provisions will be made permanent, and people will just have to make up their minds to reality on the ground.
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