Face it: You (probably) got a tax cut

NZ IndicatorNZ Indicator Senior MemberPosts: 10,176 Senior Member

If you’re an American taxpayer, you probably got a tax cut last year. And there’s a good chance you don’t believe it.

https://www.nytimes.com/2019/04/14/business/economy/income-tax-cut.html

Replies

  • fishingcomicfishingcomic Senior Member Posts: 24,265 Senior Member

    Paid $100 more this year than last.

    'I've spoken of the Shining City all my political life. …In my mind it was a tall, proud city built on rocks stronger than oceans, windswept, God-blessed, and teeming with people of all kinds living in harmony and peace; a city with free ports that hummed with commerce and creativity. And if there had to be city walls, the walls had doors and the doors were open to anyone with the will and the heart to get here. That's how I saw it, and see it still.'" Ronald Reagan
  • CO NativeCO Native Senior Member Posts: 1,556 Senior Member

    Paid less federal and more state (turning into California).

  • bmmikebmmike Posts: 541 Senior Member

    The withholding changes are what screwed people. They probably got more money thru the year as they paid less in and then less, if any, back at return time. I did — paid a little instead of getting some back. Not a hardship or anything for me, but for those that use their tax returns as a kind of savings (and I’m not debating the merits of this here) it would certainly have been a surprise. There were some changes in write offs for mortgage stuff that caused a hit for some, as well, me included

    I would think that it’s actually an economic hit, albeit fairly small, in general. I think a lot of these refunds were used for home improvement projects, as an example, and other local economic boosters in the past that won’t be happening this year. Antecdotal evidence here, but this is what I had always done with my returns — put it towards either home improvement or travel — and this year I am going to hold off on the kitchen renovations on account of the roughly $1k I paid rather than received as that’s a $2k swing in what I thought I have as a budget. Maybe next year.

  • StevenSteven Senior Member Posts: 3,559 Senior Member

    I paid some on Monday but overall saw a cut. I've always been plus or minus a bit, so have never counted on it.

  • MikeAMikeA Senior Member Posts: 4,095 Senior Member

    First time since I didn't have dependents that I haven't owed almost $2000. I actually got some back! Plus I paid less all year. It helps that we don't have state income tax in TN, thank God!

  • George KGeorge K Super Moderator Posts: 10,007 Senior Member

    We owed some because our accountant had us pay less than we should have quarterly, but paid about the same as last year. They claim many people are having the same problem, not just their clients

    Hmmmm.

    BTW, those of you in states with no income tax, have you compared your overall burden with neighboring states having income taxes but without a ton of state, county and local fees? When I lived in CT and NJ there was no income tax, but they got it in other ways, like a $500 one-time county registration fee on a car in CT.

    My favorite, which I've paid in addition to income taxes in some places is the Occupational Privilege Tax, usually just $10-25, but whereby you are taxed for the "privilege" of being alive and paying other taxes to a jurisdiction.

    Keep your stinkin' government hands off my Medicare.
  • MikeAMikeA Senior Member Posts: 4,095 Senior Member

    Tennessee has no state income tax and some of the lowest property taxes in the nation. The state offsets these low taxes with higher sales taxes, and as a result, a significant percentage of Tennessee's taxes are actually paid by nonresidents. Memphis, Nashville, and Knoxville are all popular tourist areas that help bring in out-of-state dollars.

  • StevenSteven Senior Member Posts: 3,559 Senior Member
    edited April 17 #9

    @fishingcomic said:
    Paid $100 more this year than last.
    Throughout the year? W> @MikeA said:

    It's also meaningless unless we know how his income changed.

    It helps that we don't have state income tax in TN, thank God!

    That is nice with the increase in standard deduction. Iowa, is unfortunately, a relatively high tax state.

    My wife was pissed when I explained we didn't give enough to charity to itemize deductions on top of our state taxes (we're still renting so no mortgage deduction). She sees it as her way of not paying the government.

  • Green Mt BoyGreen Mt Boy Senior Member Posts: 1,076 Senior Member

    It is true that most people probably saw a reduction in tax liability, but because they reduced the amounts withheld from their paycheck they got smaller refunds (or had to pony up on 4/15) and thus it feels like their taxes when up. Cynically, I like the fact that the resulting perception is negative vis-a-vis the President.

    As for me, the new tax law is a mixed bag. VT is a high tax state with a state income tax, sales tax, and high property taxes. As a result, the new limitation on deductions to 10K hurt. However, as a co-owner of a small business I was able to deduct a significant portion of the income I make from the business.

  • jbillyjbilly Senior Member Posts: 5,304 Senior Member

    The accountant...aka the wife ran our numbers is 2018 and 2017. For 2018 we owed 500 bucks. Using the 2017 rules is 2018 we’d have owed over 2k

    Thus savings.

    She has ultra lib client (note wife is a big lib...don’t ask). Client ranted and ranted on FB about how horrible and awful new tax law is. So wife did same for her client. New 2018 laws saved client and her wife over 16k. Oddly enough her FB rants stopped. But of course she didn’t correct herself.

    Reality is a b!tch

  • fishingcomicfishingcomic Senior Member Posts: 24,265 Senior Member

    Actually due to my bonus situation I made a bit less this year than last and I still paid about $100 more.

    'I've spoken of the Shining City all my political life. …In my mind it was a tall, proud city built on rocks stronger than oceans, windswept, God-blessed, and teeming with people of all kinds living in harmony and peace; a city with free ports that hummed with commerce and creativity. And if there had to be city walls, the walls had doors and the doors were open to anyone with the will and the heart to get here. That's how I saw it, and see it still.'" Ronald Reagan

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