Yahoo! News Feb 6, 2019
It’s February, which means it’s officially everyone’s favorite time of year: tax season!
And while most of us will be putting off tracking down our W-2s until early April, some people managed to file their taxes already. And among these early birds, many in the middle class are shocked to find instead of the nice little chunk of change they were expecting with their return, they actually owe money to Uncle Sam. Uh-oh…
What’s the reason for this financial switcheroo?
It stems from Trump’s tax reform, which was passed in 2017 and touted by Trump and the GOP as a win for the middle class. However, with the new tax system now in place, Americans are discovering most of the tax relief from the bill is actually being experienced by corporations, not families.
Meanwhile, many people are seeing an increase in taxes due to the bill eliminating many of the deductions that were used by middle-class families in order to lower the amount of taxes they were required to pay. Most notably, the tax reform placed a cap on deductions for taxes on both state and local levels.
Unsurprisingly, people are not happy to discover what they expected to be a decrease in taxes paid is actually an increase. Those who had been supporters of Trump are especially infuriated, as many were under the assumption he would provide financial relief for middle-class families, something he consistently promised during his Presidential campaign.
Many have taken their anger online, with#GOPTaxSCAMStories trending on Twitter as more and more members of the middle-class express their feelings of betrayal towards Trump and Republicans.
Several users explained that they had voted for Trump and now were left wondering if they had made the wrong decision.
Others presented just how much their taxes had shifted in just a year, highlighting how much of a shock the effect of this bill has been.
And many swore that they would no longer be supporting Trump, as they felt misled by the President.
While Democrats may have been tempted to mock Republicans for getting tricked by Trump, many instead said they deserved sympathy, since they had been victims of “statistical manipulation.”
With Trump already struggling to maintain support among any group other than the ultra-wealthy, could the implementation of his tax reform actually backfire and cause him to lose more supporters from the middle class? Only time will tell, but based on early responses, seems like a distinct possibility…
This seems to be the explanation. Apparently Paul Ryan whizzed on the electric fence when he rigged witholding to hide the tax exemptions he stole from most families.
Imagine that, rocket surgery with Paul Ryan and the patient dies. Who could have seen that coming? Why I NEVER!!!
That’s not why Paul Ryan retired as Speaker of the House… you know, before the shit hit the fan following his “emergency money-ectomy.” NAH!
Onward, Kleptocrats! Awaaayyyyy
Average tax refunds were down last week 8.4 percent for the first week of the tax season over the same time last year, according to the Internal Revenue Service. Dipping refunds are inflaming a growing army of taxpayers stunned by the consequences of the Trump administration’s tax law — and the effects of the partial government shutdown.
The average refund check paid out so far has been $1,865, down from $2,035 at the same point in 2018, according to IRS data. Low-income taxpayers often file early to pocket the money as soon as possible. Many taxpayers count on the refunds to make important payments, or spend the money on things like home repairs, a vacation or a car.
The IRS estimated it would issue about 2.3 percent fewer refunds this year as a result of the changes in the federal tax law, according to Bloomberg. MSNBC reports 30 million Americans will owe the IRS money this year — 3 million more than before Trump’s tax law.
“There are going to be a lot of unhappy people over the next month,” Edward Karl of the American Institute of CPAs told Politico. “Taxpayers want a large refund.” Some 71 percent of taxpayers received refunds last year worth about $3,000 on average, according to Karl.
Scads of taxpayers are complaining on Twitter they always received a refund — but now owe the IRS instead.
The number of refunds sent out by the IRS was also down — about 24 percent — as the agency struggled to get up to speed after the government shutdown. The agency sent out about 4.67 million tax refunds in the week ending Feb. 1, compared with about 6.17 million in the same period in 2018, according to IRS data.
This year’s filing season, which began two days after the shutdown ended on Jan. 25, is complicated because it’s the first after the 2017 tax law was enacted. Though Donald Trump boasted the new code would be so simplified people could file their taxes on a postcard, that’s not the case. It’s a lie amonst so many other lies.
In addition, the changes complicated payroll withholding, so not enough money was withheld by employers in many cases, meaning people now owe more money in taxes instead of getting their promised tax breaks. The new law also capped IRS deductions for paid state and local taxes, including real estate taxes, resulting in a nasty surprise for many filers. Several other deductions are no longer allowed.
The frustrations will likely continue to fuel support for plans to boost taxes on the ultra-wealthy. A poll last month found that nearly 60 percent of registered voters support a plan by Rep. Alexandria Ocasio-Cortez to impose a 70 percent marginal tax rate on the portion of annual income that exceeds $10 million a year.
Twitter is filling up with complaints from people whose situation changed radically: