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Under new Trump tax code, average refund is 8.4 percent smaller

Discussion in 'Too Hot for Swamp Gas' started by fastsix, Feb 11, 2019.

  1. fastsix

    fastsix Premium Member

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    I bet it still doesn't fit on a postcard either.

    Under new Trump tax code, average refund is 8.4 percent smaller

    The first tax season with President Donald Trump's new tax plan is under way and it’s off to a disappointing start for early filers. The average refund this year is down 8.4 percent, to $1,865, for the week ending Feb. 1, according to data from the Internal Revenue Service.

    Americans also don’t seem to be eager to get a jump start on their taxes. The total number of returns received for the first official week of tax season was 16.04 million. That’s down 12.4 percent from the first week of last year’s tax season.

    Early filers, who were expecting bigger refunds after the White House promised a $4,000 “raise” under the Trump tax plan, vented their frustrations on Twitter, using the hashtag #GOPTaxScam.

    ... the plan, which Trump said would simplify the tax code, also got rid of many deductions working class Americans relied on to lower their tax bill, such as home equity loan interest, moving expenses and certain job costs, including licensing and regulatory fees.
     
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  2. citygator

    citygator Premium Member

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    This was one of the worst tax plans ever devised. Rich get richer. Average Joe (and poor) get poorer. Not sure why lemming Pubs go along. I assume it’s ignorance of the facts?
     
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  3. fastsix

    fastsix Premium Member

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    If this holds, and refunds are smaller this year, and it's because more money is being paid in taxes rather than less being withheld for taxes, you really can't blame people for believing what they were told. Taxes are too complicated for most people to bother going through trump's tax plan and seeing if he was telling them the truth or not. They took him at his word, and at the end of this tax season they'll find out if he was telling the truth or not - or at least they'll know for sure if their refund was more or less.

    Regardless, this start is not a good look for the trump tax plan.
     
    Last edited: Feb 12, 2019
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  4. oragator1

    oragator1 Premium Member

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    The amount extra I got back per paycheck is about identical to what I gave up in my refund because of lost dedeuctions, within a few hundred dollars.
    So if I am representative, we blew out the deficit for a bait and switch. More Washington awesomeness.
     
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  5. obgator

    obgator Junior

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    They like to be trick(l)ed?
     
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  6. mutz87

    mutz87 Complexified VIP Member

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    Many of them know better but can't admit it. There's a psychological imperative to maintain the illusion.
     
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  7. flgator2

    flgator2 GC Legend

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    I know you guys are eager to trash any and everything Trump does, but how about we give this a another couple of month's to see the actual true numbers. Several my employees have already filed and was bragging how much their getting back
     
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  8. gatorpika

    gatorpika Premium Member

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    I have seen these articles floating around and it just proves that people are morons. Even setting aside the fact that taxes are kinda complicated, though not so much that the average person who takes the standard deduction can't go on the web and get a quick and pretty accurate estimate from multiple sites. It's just common sense that if you pay less in overall your refund is likely to be smaller. Too many people think of refunds as some kind of bonus from the government or something. But then some of the media outlets are playing this up like it's some kind of broken promise from the administration rather than laziness on the part of the taxpayer.
     
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  9. GatorNavy

    GatorNavy Damn the torpedoes! Moderator VIP Member

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    Data from only one week in to the tax season is a pretty small sample to be used to draw any reasonable conclusions.
     
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  10. BigCypressGator1981

    BigCypressGator1981 Premium Member

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    Because conservative pols pretend like they care about social issues like abortion so they can get the lemmings to line up to vote for their tax cuts.
     
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  11. mutz87

    mutz87 Complexified VIP Member

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    The sample was over 13 million.
     
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  12. citygator

    citygator Premium Member

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    The bulk of the tax cut went to the rich and corporations. That’s a fact.

    However, your refund doesn’t indicate how much taxes you paid due to withholdings. Feels like an incomplete story that Pubs are famous for running with. Come on Dems.
     
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  13. busigator96

    busigator96 Hooked since summer 1997!

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    The tax breaks went to the large corporations.
     
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  14. mutz87

    mutz87 Complexified VIP Member

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    Incomplete is a good word choice. NTL, an 8.4% decrease based on over 13m returns should raise an eyebrow a bit given that it's on the heels of the tax cut.
     
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  15. GatorNavy

    GatorNavy Damn the torpedoes! Moderator VIP Member

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    Thanks, but still a pretty small sample.
     
  16. mutz87

    mutz87 Complexified VIP Member

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    You're welcome. Gonna have to disagree though, 13m is a massive sample even if it's a small percentage of all tax returns.
     
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  17. GatorNavy

    GatorNavy Damn the torpedoes! Moderator VIP Member

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    A small percentage of all taxes is still a small sample.
     
  18. VAg8r1

    VAg8r1 GC Hall of Fame

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    Accurate, but implicitly it means that the impact of the tax cut insofar as average taxpayers are concerned was greatly exaggerated. Withholding was reduced, presumably based a computer algorithm used by the IRS, on the assumption of a reduced tax liability. The problem for those taxpayers experiencing either a reduced refund or even a liability for taxes as the result of insufficient withholding is that the tax cut didn't have the promised impact. Should be interesting to see how this affects Trump's popularity.
     
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  19. mutz87

    mutz87 Complexified VIP Member

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    Gotta disagree. The percentage is far less relevant to the sample size for measurement purposes. A sample of 13m out 150m tax filers, or even if we used the entire population of Americans, roughly 325m, would give us a margin of error that is effectively indistinguishable from zero. But we shall see in a few months how it plays out.
     
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  20. AgingGator

    AgingGator GC Hall of Fame

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    A large refund from the IRS after filing your return only shows one thing: That you were foolish to let the IRS withhold more money than your tax liability. That extra money withheld is a waste. I wonder how many people who get a few thousand $ back in a refund are not fully investing in their company’s 401K, where that same money could have been matched at 50% plus been working for them all year long.

    Disengenuous, politically slanted article. This writer chooses to write a political piece instead of helping people better manage their money.
     
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