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Lower tax refunds? Are they a problem?

Discussions about the economic and financial ramifications of PEAK OIL

Re: Lower tax refunds? Are they a problem?

Unread postby vtsnowedin » Thu 28 Feb 2019, 19:09:25

Apparently the refunds are catching up as the filing season continues.
I would be "shocked shocked I say" if we found someone was fiddling with the actual figures a bit to advance a political position.
https://www.atr.org/treasury-tax-refund ... vious-year
Tax refunds increased by 17 percent last week and are now at the same level as last year, according to Treasury Secretary Steven Mnuchin.

The left and the media have spent the past few weeks arguing that the reduction in tax refunds in the first few weeks of tax filing season meant that families are seeing a tax increase.

This is misleading and wrong. Even if an individual has a lower refund, this is not cause for a concern. A lower refund simply means that the government has been holding less of your money interest-free over the past year.

In net, the Tax Cuts and Jobs Act is a tax cut for the majority of Americans, including middle class families:

90 percent of wage earners have seen more money in their paychecks.

Taxpayers earning between $20,000 and $50,000 are seeing net federal tax cuts of 10 percent or higher according to the Joint Committee on Taxation.

91 percent of taxpayers with annual income between $64,000 and $108,000 are seeing a 2018 federal tax cut averaging $1,400 according to the left of center Institute for Taxation and Economic Policy.

A family of four with annual income of $73,000 is seeing a 60 percent reduction in federal taxes totaling more than $2,058.

According to the Heritage Foundation, the typical American family will be almost $45,000 better off over the next decade because of higher take-home pay and a stronger economy.

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Re: Lower tax refunds? Are they a problem?

Unread postby vtsnowedin » Sun 03 Mar 2019, 01:33:22

Now Huffing and puffing post has that 11 million tax payers are losing 323 billion in deductions.
Let's do the math on that.
323,000,000,000 / 11,000,000 = $29,364 average deductions lost and as 10,000 is still allowed the average tax payer in this group is paying $39,364 in state and local taxes. that is a pretty hefty chunk so that average payer must be in the 35% bracket so their total tax bill rose by 35% of 29,364 or $10,277
I'm still having a hard time feeling sorry for people making enough cash to owe that kind of tax money.
https://www.huffpost.com/entry/tax-dedu ... f77651b412
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Re: Lower tax refunds? Are they a problem?

Unread postby Outcast_Searcher » Sun 03 Mar 2019, 01:48:39

vtsnowedin wrote:the average tax payer in this group is paying $39,364 in state and local taxes. that is a pretty hefty chunk

Given that I easily live on less than that, even with close to a third of that in medical costs (mostly insurance) -- (aside from income taxes and gifts), yeah, it's pretty amazing what people pay to live in fancy schmancy houses and areas, and then scream bloody murder that it's so hard to "make ends meet".
Given the track record of the perma-doomer blogs, I wouldn't bet a fast crash doomer's money on their predictions.
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Re: Lower tax refunds? Are they a problem?

Unread postby vtsnowedin » Sun 03 Mar 2019, 09:49:51

Here is anther tidbit of info:
According to California Franchise Tax Board, approximately 2.6 million taxpayers deducted more than the $10,000 limit in state and local taxes in 2015. Of that group, about 1 million will owe more in taxes in 2018 — to the tune of $12 billion. About $9 billion of that will be paid by about 43,000 Californians who make $1 million or more.

But some middle-class taxpayers are likely to pay more, too. According to tax board estimates, 751,000 California households with incomes under $250,000 will probably owe a combined $1.1 billion. And given the high cost of living in the state, $250,000 does not feel like nearly as much money as it does in other parts of the country.

Read more here: https://www.mcclatchydc.com/news/politi ... rylink=cpy


So number crunching .... 43,000 with yearly incomes of 1,000,000+ pay on average $209,302 more under the new tax code. sounds like tax the rich to me.
Then the ones making less then $250K that take a hit. (no word on where the cutoff line is) 1,100,000,000/751,000=$1464 each. Not a nice surprise but hardly the end of the world to somebody making say $225,000 a year.
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Re: Lower tax refunds? Are they a problem?

Unread postby Outcast_Searcher » Sun 03 Mar 2019, 20:40:40

vtsnowedin wrote:Here is anther tidbit of info:
According to California Franchise Tax Board, approximately 2.6 million taxpayers deducted more than the $10,000 limit in state and local taxes in 2015. Of that group, about 1 million will owe more in taxes in 2018 — to the tune of $12 billion. About $9 billion of that will be paid by about 43,000 Californians who make $1 million or more.

But some middle-class taxpayers are likely to pay more, too. According to tax board estimates, 751,000 California households with incomes under $250,000 will probably owe a combined $1.1 billion. And given the high cost of living in the state, $250,000 does not feel like nearly as much money as it does in other parts of the country.

Last I checked, no one was forced to live in high tax states and/or cities. Or buy huge houses with high taxes.

But does seem to severely challenge the liberal assertion that this tax change is almost all about helping the rich and screwing the poor. Now they'll need to find something else to jingle their keys at.
Given the track record of the perma-doomer blogs, I wouldn't bet a fast crash doomer's money on their predictions.
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