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Here we go - 2019 tax filers - more owe; lower refunds

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Here we go - 2019 tax filers - more owe; lower refunds

 
Old 02-11-2019, 10:40 AM
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pdiddy972
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Default Here we go - 2019 tax filers - more owe; lower refunds

https://www.washingtonpost.com/busin...=.5017109f918d

Wonder who these people will blame when the "tax cut" results in millions of Americans paying more, resulting in either lower refunds or paying more at tax time?
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Old 02-11-2019, 10:43 AM
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The speaks...
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Old 02-11-2019, 10:43 AM
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If they owe....how are they getting a refund?
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Old 02-11-2019, 10:45 AM
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https://bongino.com/liberals-are-twi...YAkMb1lBXSdXUo

Owing More Doesn’t Mean Paying More

A widely circulated CNN article is being misinterpreted to claim that taxes up are in 2018. “The average refund is down about 8% under the first full year of the overhauled tax code, according to data released by the IRS on Friday. Refunds averaged $1,865 compared to $2,035 for tax year 2017,” reported Victoria Cavaliere.



A large source of the confusion seems to be coming from the fact that the percentage of income withheld from paychecks has decreased. Suppose for the sake of simplicity that someone earns $50,000 a year, pays 20% tax ($10,000 annually), and pays that tax in the form of $200 a week for a 50-week work-year. Since they pay exactly what’s owed, they would receive no refund. Now suppose the tax rate decreases to 18% (so $180 a week is owed), but because a smaller percentage of taxes are withheld, only $170 is actually paid. Thus, while that person had their taxes decrease by $100 overall, they would still end up owing $500 at the end of the year.
Or put simpler: people are receiving smaller refunds because they paid fewer taxes in the first place.
It’s doubtful that the average employee is paying attention to such a thing, so you can hardly fault some people for mistakingly believing their taxes went up. However, those economically inclined have known this since July 2018 when the Government Accountability Office released a report stating that 30 million taxpayers would end up owing money in 2019 due to insufficient withholding, a significant increase over the year prior. The percentage of employers that over-withheld employees taxes decreased from 76% to 73% from 2018-2019, and the percentage that underwithheld tax increased from 18% to 21%. Both groups are likely to see an increase in their taxes owed.



Bear in mind that we have a labor force of over 160 million people, so each percentage point change is equal to 1.6 million workers (or 9.6 million overall who experienced a change).

Rates Did Decline

The Trump tax cuts composed of both corporate tax reform (cutting the corporate tax rate from 35% to 21%), and across the board cuts to individual income tax brackets. Below is the percentage point decline for each bracket. Also note that $5,650 increase in the standard deduction. For someone in the 22% bracket, the value of the increase in the standard deduction comes out to about $1,243 in post-tax income.

SINGLE TAXPAYERS

2018 Tax Rates – Standard Deduction $12,0002017 Tax Rates – Standard Deduction $6,350

10%0 to $9,52510%0 to $9,325

12% (-3%)$9,525 to $38,70015%$9,325 to $37,950

22%



(-3%)

$38,700 to $82,50025%$37,950 to $91,900

24% (-4%)$82,500 to $157,50028%$91,900 to $191,650

32% (-1%)$157,500 to $200,00033%$191,650 to $416,700

35%$200,000 to $500,00035%$416,700 to $418,400

37% (-1.6%)Over $500,00039.60%Over $418,400

Before the Trump tax cuts, the bottom 80% of income earners paid roughly 33% of all federal income taxes, but received 35% of the benefits from the Trump tax cuts. The top 1% paid 27% of all federal taxes, and received only 21% of the tax cut, according to the center-left Tax Policy Center.

Who Could End Up Owing More?

There are exceptions, however, and those likely to actually be paying more this year are homeowners on coastal states, which tend to have higher property tax burdens (mainly stemming from higher housing prices in those states), and high state income taxes. The Trump Tax cuts capped state and local tax deductions (SALT) to $10,000 a year, so those who pay more than that some are losing out on deductions (which appears to be the case of Dennis, the second tweet quoted at the beginning of this article).

Prior to the Trump tax cuts, 77% of the benefits of SALT deductions went to those earning above $100,000, while only 6.6% went to those earning below $50,000 (who are unlikely to be affected by the SALT cap anyway, unless they’re paying over 20% of their incomes in state and local taxes).

While this is inflated by high-income earners, the average SALT deduction claimed nationwide in 2015 was $12,471, meaning the average person claiming is losing a $2,471 write-off. Assuming they fall in the 24% income bracket, the value of that write-off is approximately $593, which would be more than offset by declines in individual tax brackets. A 2016 Tax Policy Center study found that a complete elimination of SALT deduction would raise taxes on 88% of households earning over $1 million, raising the taxes of the average millionaire by $46,550.

Overall, the average taxpayer saw a $2,200 cut under the Trump tax plan, while 6 percent of households saw an increase of $2,800 (nearly all of which were concentrated in the top 10% of income earners).

While it is true that the Trump tax plan did raise taxes on some earners, there were roughly 10 people who saw a cut (most of whom were concentrated in the bottom 90% of income earners) for everyone who saw an increase (most of whom were in the top 10%). Admittedly, I’d have preferred if all brackets saw cuts, but liberals can hardly mischaracterize the Trump tax cuts as “tax cuts for the rich.”

SALT Changes Coming in 2019?

President Trump has publicly indicated that he’s open to increasing the $10,000 SALT cap to provide relief to middle class and upper-middle class families negatively affected. “There are some people from New York who have been speaking to me about doing something about that, about changing things. It’s been severe on them,” he said earlier in the month to The Stamford Advocate. While he didn’t elaborate on the extent to which the cap would be lifted, the move is likely to garner support from coastal Democrats if advanced further.



Last edited by dpd3672; 02-11-2019 at 10:45 AM.
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Old 02-11-2019, 10:45 AM
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Sounds like more Americans made more money than previous years and are whining because they were too damn stupid to adjust their withholdings.
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Old 02-11-2019, 10:45 AM
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You can only file once, but you can bitch about it in two threads...
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Old 02-11-2019, 10:46 AM
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weak little beta sky screamer loon best you tell WaPo that many returns weren’t processed because of the .gov shutdown. you’re deeply gut hooked UBI Socialist member of the party of death, racists and 70-90% in taxes. heck of a platform you’ve got there wacko
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Old 02-11-2019, 10:47 AM
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Many Americans may confuse their meager refunds as a sign that they paid more in taxes as a result of the Tax Cuts and Jobs Act. Generally, that is not true.

According to the Tax Policy Center, 80 percent of filers received a tax cut, and about 5 percent wound up paying more in federal income taxes. The tax cuts showed up in fatter weekly or biweekly paychecks for most Americans, but few people noticed, according to polling.

“There’s a difference between taxes and your refund,” said Joseph Rosenberg, a senior research associate at the Urban-Brookings Tax Policy Center at the Urban Institute. “People generally got a piece of their tax cut last year gradually in the form of lower withholding on their paychecks.”
What a dork.
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Old 02-11-2019, 10:53 AM
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Old 02-11-2019, 10:58 AM
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Typically, the OP did no research and simply copied and pasted a story from the left wing WP....anything remotely anti trump and he cannot wait to post it up...kind of sad really...
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Old 02-11-2019, 10:59 AM
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Basic math eludes the op.
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Old 02-11-2019, 11:02 AM
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That article is yellow journalism at its best. Create a deceptive title that preys on people's stupidity about refunds & taxes, reinforce that deception in the beginning of the article, and then tell the truth at the end of the article, after hopefully everyone has stopped reading.
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Old 02-11-2019, 11:08 AM
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Originally Posted by pdiddy972 View Post

Wonder who these people will blame when the "tax cut" results in millions of Americans paying more, resulting in either lower refunds or paying more at tax time?
You realize what a tax refund is don’t you?
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Old 02-11-2019, 11:08 AM
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Originally Posted by tistan View Post
Sounds like more Americans made more money than previous years and are whining
because they were too damn stupid to adjust their withholdings.
Vote for the Dems next time fools!!
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Old 02-11-2019, 11:10 AM
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Life is hard, it is even harder when you are dumb and stupid. Just keep listening to the communists con artists they will own your *** and you can call yourself the slave.
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Old 02-11-2019, 11:12 AM
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fail
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Old 02-11-2019, 11:15 AM
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OP .. I thought paying higher taxes are what you collectivists want? So what's wrong with making the west coast and north east socialists finally pay their 'fair share'?

Last edited by 1955 BelAir; 02-11-2019 at 11:16 AM.
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Old 02-11-2019, 11:23 AM
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The real question is "Are they paying more in Federal income taxes than last year". What they get back or have to pay April 15th is irrelevant. It the total amount paid.
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Old 02-11-2019, 11:24 AM
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Well if that's the case you dems should be ecstatic. You guys are all about people paying more taxes. Time for the democrats to celebrate!
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Old 02-11-2019, 11:26 AM
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Originally Posted by VITE1 View Post
The real question is "Are they paying more in Federal income taxes than last year". What they get back or have to pay April 15th is irrelevant. It the total amount paid.
Don't kill my buzz, dude.
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