Official. Tax Cuts are a bust for Middle Income taxpayers


#61

It’s the effective federal tax rate = income taxes paid / AGI

It was with itemization. I have a carry forward loss on the rental thanks to replacing the HVAC.


#62

A better comparison is the ratio of tax over gross income. AGI is not a good comparison as different things got deducted before and after tax reform.


#63

#64

People in Middle America should be paying less under the new law. The decrease in refund is because of the change in withholding rules.

I am more curious how homeowners in Bay Area are faring. Tell us how much change you are seeing with the new law.


#65

Exactly. It’s as I said months ago. The average American only knows their refund amount. They have no idea how much they paid in taxes or what their effective tax rate is. It’s why it’s imposisble to have a national debate on it.

Politicians have learned which sound bites score points with their base by getting them to react emotionally. It’s why the middle class paying a 3% effective rate think the rich paying a 25% effective rate aren’t paying their fair share. The ignorance benefits politicians who use class warfare to justify voting for them.


#66

Surprisingly have yet to breakdown, so politicians can continue this approach for a long time :face_with_symbols_over_mouth:


#67

#68

I almost peed in my pants reading the poor clownish republicans trying to play their imbecility playing the emotional effect as if Americans have to jump like dogs to get what they used to get from their tax returns. They, in their narcissist mentality are trying to diminish the fact that they hurt millions of Americans.

Everywhere you read how this and that person, who has had the same income, same number of kids, yada, yada, yada, has lost upwards of $6,000

Meanwhile, the rich guys had a wonderful tweak of the tax code to give them up to 14% tax discount, immediately, without them jumping the ropes like any of those middle class American drooling while mumbling jumbling MAGA!

Unbelievable to see people being so lackey.


#69

I was never a fan of Trump or his tax plan. But I think it is a minor issue for most of us for taxes payed. The media wants to make it an issue. But the Democrats will never give a tax cut. If they win in 2020 everyone on this forum will be paying more taxes.


#70

Politicians have learned which sound bites score points with their base by getting them to react emotionally. It’s why the middle class paying a 3% effective rate think the rich paying a 25% effective rate aren’t paying their fair share. The ignorance benefits politicians who use class warfare to justify voting for them.

I think upper middle class in HCOL pays 25% effective rate. Rich like Romney pay 13% effective rate. That is a matter that needs to be fixed.


#71

#72

It might be that that are no longer getting refunds got bigger paychecks. But, when you have to go on CNBC to back up the tax law you passed a year ago to defend it, it means that …

the marketing was …

EPIC FAIL

Go fight the next battle. This one is already lost and you’re digging a bigger hole.


#73

Forget about the apologists. They are really dumb down by their own party. They are trying to play this failure on people adjusting the amount to be withheld, the got more money every paycheck, and so on, but numbers don’t lie. Taxpayers everywhere, in the millions, future democrat voters, are suffering.

Adjusted withholdings but not enough;

For some, this tax season so far has come with a costly surprise – a tiny tax refund or a big tax bill. The shock is hitting their finances.

""Diana Hansen didn’t want to take any chances on her refund that she planned to use for a trip to Bermuda this year to celebrate her 25th anniversary with her husband. Aside from her typical withholdings, Hansen – an executive administrative assistant – had $100 more taken out of each paycheck. <--------- :laughing::laughing::laughing::laughing::laughing:

It still wasn’t enough. The couple – who normally gets $1,000 to $3,000 backowes $4,200 in federal taxes.

Let me repeat it for you:

The couple owes $4,200 in federal taxes. They used to get $1K-$3K and even “donating” $100 more every paycheck they owe!. MAGA!


#74

#75

U.S. Tax Refunds Plunge 17% as Treasury Ratchets Up Defense

February 22, 2019, 9:28 PM PST

  • Data contain aberrations and may be misleading, Treasury says

  • Direct-deposit refunds decline for the third week in a row

https://www.bloomberg.com/news/articles/2019-02-23/u-s-tax-refunds-plunge-17-as-treasury-ratchets-up-defense?srnd=premium


#76

#77

That’s a surprising small percent of the total. That’s under 10% of returns.


#78

The spinning doctors working hard to deny the fact that taxpayers right and left are being hurt by a legislation done in a hurry only to help the rich and corporations.

You can spin it the way you want, the numbers are out there, the GOP, again, lied.

But, the blame is on the stupid Americans supporting and believing this bull.


#79

We usually get 10-15k back every year, this year we owed $500. Definitely changing my W4 withholdings this year to avoid that happening again next year because I already claim 0… SALT limit was big part of it


#80

Sorry to hear you didn’t get the $1,000 to buy that brand new car, or remodel your kitchen. :wink: