Jump to content
OILERMAN

The tax windfall that wasn't: A troubling new IRS report suggests many Americans may be giving money right back to the government

Recommended Posts

OILERMAN   
2 hours ago, The Toddster said:

If people are upset with having their taxes lowered, they need to have their heads examined.  

Not everyone had their taxes lowered and the reason people are upset that did have their taxes lowered(ever so slightly) is because the withholdings changed and they just wait for a refund as opposed to understanding the big picture. 

 

Another reason people are upset is because they do understand the big picture.

 

The tax cut gave middle class people crumbs(temporary!), see Paul Ryan having to delete a tweet about a teacher saving $60.00+ dollars a year while Berkshire Hathaway saved 27 bill in one year, while big banks saved 10s of billions in one year, laid people off and made it harder to borrow money. 

 

This is absurd when companies were flush with cash and the economy was already climbing up the last several years. 

 

The tax cut was really nothing more than theft 

 

Share this post


Link to post
Share on other sites
ctm   

01/10/2018

 

The IRS is facing its first big challenge implementing the new tax law: deciding how much in taxes to withhold from millions of Americans’ paychecks.

The agency is under pressure to take as little as possible so people will see big increases in their take-home pay ahead of this year’s midterm elections.

 

But that would come at a cost: smaller or even nonexistent refunds next year, though millions rely on them to plug holes in their family budgets. Democrats are already accusing the Trump administration of plotting "phantom windfalls" ahead of the November contest that will come back to haunt taxpayers next tax season.

 

“We oppose any attempts by the administration to systematically under-withhold income taxes during the 2018 tax year, knowing that in 2019 taxpayers may find they owe taxes when they were expecting a refund,” Sen. Ron Wyden and Rep. Richard Neal, the top Democrats on congressional tax committees, wrote to acting IRS Commissioner David Kautter.

 

Even before President Donald Trump signed the bill into law last month, Republicans were promising Americans they wouldn’t have to wait long to see the benefits.

“You’re going to start seeing a lot more money in your paycheck,” Trump said on Monday during a speech to the American Farm Bureau Federation.

 

As Wyden and Neal pointed out, bigger paychecks now could mean a nasty surprise in 2019. Some accustomed to receiving annual refunds could find themselves suddenly in arrears to the IRS.

“This is not something you want to fool the American taxpayer about — you don’t want to have them feeling good because they’re getting a big bump in take-home pay only to be surprised next year,” said Larry Gibbs, a former IRS commissioner.

 

What’s more, about 8.5 million taxpayers will see tax increases, according to TPC, which not only threaten their refunds. It could also put them at risk of incurring underpayment penalties the IRS imposes on those who pay less than 90 percent of their taxes during the calendar year.

 

https://www.politico.com/story/2018/01/10/tax-reform-paychecks-irs-332183

Edited by ctm

Share this post


Link to post
Share on other sites

Yeah it is very obvious what happened. The Republicans and administration made sure the tax cut was frontloaded through lower withholdings. They hoped that would counter the argument that normal people would not get much of a benefit. This was done to try to minimize losses in the midterms. They basically went for broke for the 2018 election, knowing folks would learn the truth come early 2019.

 

In terms of pure cold strategy it wasn't a bad plan. But given that it failed and Republicans had historical losses in the midterms, it ended up being a total disaster. 

 

Then you had the Trump Shutdown and all of a sudden republicans look as inept as democrats and can't get out of their own way. 

Share this post


Link to post
Share on other sites

Imagine if because of Trump you went a month and a half with no paycheck AND you aren't getting a refund AND you even owe something. There could be a decent amount of people that get this triple whammy 

Share this post


Link to post
Share on other sites
9 Nines   

Also depending on size of impact, it front loaded the economy.  The economy is driven by demand. That extra money, from lower withholding, was likely spent by a majority of people, adding to demand.  Now if a lot were impacted, it will be the opposite - a demand shock and it will come after companies likely built up inventories to match the new higher demand, which might mean cutbacks by companies, which would means layoffs.

Edited by 9 Nines

Share this post


Link to post
Share on other sites
4 hours ago, The Toddster said:

If people are upset with having their taxes lowered, they need to have their heads examined.  

 



My wife wants a big refund for some reason, I want the money available to us each month.  

A lot of people use the refund as sort of like an annual savings account. I’m with you, I want my money now, not once a year. 

Share this post


Link to post
Share on other sites
3 hours ago, JakePA_Titan said:

National Enquirer parent company owner David Pecker's lawyer denies Bezos allegations
https://www.yahoo.com/newsroom/vibes/us-news/v-ecd5e8af-dc90-3332-9efb-d522bf6b8dfa_c-e5200033-271c-30a7-9c8e-a7c205a86d99_a-8b18cd40-84b8-3aa5-9120-19d34e9b9225

 

Hope he has more than that copy and paste shit to share.....

1) wrong thread; and

2) he still didn’t deny the text of the email, WHICH IS EXACTLY WHAT YOU IMPLIED HAD BEEN ALTERED YOU DIMWITTED DONKEY FUCKER. 

Share this post


Link to post
Share on other sites
4 hours ago, The Toddster said:

If people are upset with having their taxes lowered, they need to have their heads examined.  



Remember when Republicans warned working people that they would lose their refund as part of this “tax cut”?

 

Funny, neither do I...

Share this post


Link to post
Share on other sites
OILERMAN   
15 hours ago, Legaltitan said:

Yeah it is very obvious what happened. The Republicans and administration made sure the tax cut was frontloaded through lower withholdings. They hoped that would counter the argument that normal people would not get much of a benefit. This was done to try to minimize losses in the midterms. They basically went for broke for the 2018 election, knowing folks would learn the truth come early 2019.

 

In terms of pure cold strategy it wasn't a bad plan. But given that it failed and Republicans had historical losses in the midterms, it ended up being a total disaster. 

 

Then you had the Trump Shutdown and all of a sudden republicans look as inept as democrats and can't get out of their own way. 

This is dead on, it was all done for the midterms. 

 

The funny thing was as it was obvious it was a failure they shifted to "oh shit a caravan of brown people are headed straight for us!"

 

Trump also threw in an imaginary 10% tax cut for the middle class he was suppose to be about to pass.

 

Those didn't work either.

 

I disagree with the Republicans looking inept. They passed a massive tax cut for their donors, appointed a slew of judges including a Supreme Court Justice after blocking Obama's pick. Regardless of what happens the 4 years of Trump will be a massive success for the Republican politicians. Hell when it's over they'll say they never liked Trump anyway

Share this post


Link to post
Share on other sites
OILERMAN   
On 2/8/2019 at 1:02 PM, Cyrus said:

I can't find any reports of inaccurate tables (later in the year) that you speak of. Just numerous articles that employers may be withholding too little.

 

https://www.msnbc.com/all-in/watch/americans-ask-what-happened-to-my-tax-refund-1442308163610?cid=sm_npd_ms_tw_ma

 

Share this post


Link to post
Share on other sites
OILERMAN   

Watch that video, it explains how an IRS rule was changed to lower people's withholdings to make it appear you got an immediate tax cut 

Share this post


Link to post
Share on other sites
OILERMAN   
1 hour ago, Justafan said:

Yea Starkiller mentioned this a few times. It's a simple fix that would add a ton to revenue. 

 

Make Capital gains taxed at ordinary income rates

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Restore formatting

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Recently Browsing   0 members

    No registered users viewing this page.

×
×
  • Create New...