that guy in AZ Wrote:
There are going to be a lot unhappy people this tax season because of the 2017 tax bill. Due to the loss of some deductions that they had previously (like state and local income taxes) people who used to get refunds are now having to pay money to the IRS. Those who ARE getting refunds, are getting less back than in prior years.
In a move reminiscent of Reagan's "smoke and mirrors", the Trump administration ordered the IRS to lower the amount that was withheld, in order to give people the impression that the tax scam bill was actually saving them money. The withholding on my checks from the school district went down a bunch, and would have forced me to pay in to the government if my wife and I were younger than 65. As a result, I am getting back ALL of the money that I paid in to the IRS, all $38.29 of it - not even enough for a meal out for 2 people.
If you are getting a refund check, there are only 4 offices in the entire country that do the processing - Kansas City, Fresno, Ogden, and Austin.
If you owe money, you'll find that there are only 5 offices that process the returns. They are in Louisville, San Francisco, Cincinnati, Hartford, and Charlotte.
Though the IRS brings in most of the revenue needed to fund the federal government, its resources have been cut year after year. In 2016 the American College of Tax Counsel wrote to the Congressional leadership stating, "We have watched the agency struggle with significant decreases in funding that have caused staffing and morale issues. In our practices, we have seen the negative impact this has had on our clients, the taxpayers.
In the 2017 fiscal year, the IRS processed more than 245 million returns and collected more than $3.4 trillion in gross revenue, spending 34¢ for every $100 it collected.
On June 28, 2018, Bloomberg News wrote, "The agency has been reeling from budget cuts. The current budget of $11.43 billion is less than in fiscal 2008, and the IRS pared about 15 percent of its workforce over the past five years. The enforcement staff has plunged by more than 25 percent since 2010.
In the 2018 fiscal year, the U.S. federal government spent $779 billion more than it brought in. It's estimated that in fiscal year 2019 the loss will be close to $1 trillion. In fiscal year 2019 the IRS plans to cut an additional 2,200 employees.
Logically, if you ran a business, you would employ enough people to ensure that you are getting the money that is owed to you. Since our government is facing a deficit of close to $1 trillion, you would think that you would want to INCREASE the funding for the collection arm of the government, NOT reduce staffing. Why in the world would you reduce the enforcement staff by 25% over a period 8 years?
The table below shows Federal tax revenue collected by each state. If you compare taxes collected to the state's GDP, you'll discover that Delaware is more generous than any other state, since the state collects 34.2% of its GDP. Minnesota is #2, at 31.9%. New Mexico is the only state that collects LESS than 10% of its GDP
Economists have determined that the 2017 has had only a minimal effect on economic growth, but will cause our national debt to rise sharply. During his 8 years in office, Reagan managed to TRIPLE the national debt.
The last Republican president to balance the budget was Eisenhower - in 1957. LBJ did it again in 1969, and Clinton did it in 1988 and 1989. If the Clinton era tax rates had been left in place, our national debt would have been ELIMINATED by 2008.
Then George W. got elected. His administration passed three tax cuts, and the debt exploded.
I was an Economics major in college, so I understand that GDP = C + I + G. As a result, when the economy is in the dumps, as it was in 2008, then it absolutely makes sense for the government to spend more than it takes in. That also was true in the 1930's, when FDR pulled us out of the Great Depression.
According to the 2018 IRS tax instructions, 17% of the government's income came from borrowing to cover the deficit. In a time of low unemployment and a strong economy, that makes no sense at all.
Right, or correct. Trump cut the amount that is taken out of worker's paychecks, which made it look like every American was getting a tax break, as it turns out, people who don't necessarily pay any taxes (income brackets) realized there was an extra 5 bucks less taken out for taxes, which when they filed, would have gotten nearly all of it back, except that is if they're enrolled in the ACA, which they receive a subsidy for, the lowered amount earned reflects what the IRS will need to make up because of the shortfall in the amount the taxpayer has paid in. So, when people do their taxes on any free website like turbotax, they're going to find out they need to pay back the shortfall because they're tax cuts weren't really tax cuts at all. People like us expected a $700 plus refund, like me & wife, got a rude awakening, we ended up paying back $379 for her ACA subsidy to the IRS.
Trump and the GOP tax cuts for the middle and lower classes was nothing but smoke and mirrors, like you stated in your post. The really big winners of the GOP/Trump tax cuts were the wealthy (a high income bracket)