Face It: You (Probably) Got a Tax Cut

[Anonymous]

Face It: You (Probably) Got a Tax Cut

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

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.

Yet as the first tax filing season under the new law wraps up on Monday, taxpayers are skeptical. A survey conducted in early April for The New York Times by the online research platform SurveyMonkey found that just 40 percent of Americans believed they had received a tax cut under the law. Just 20 percent were certain they had done so. That’s consistent with previous polls finding that most Americans felt they hadn’t gotten a tax cut, and that a large minority thought their taxes had risen — though not even one in 10 households actually got a tax increase.

To a large degree, the gap between perception and reality on the tax cuts appears to flow from a sustained — and misleading — effort by liberal opponents of the law to brand it as a broad middle-class tax increase.

...

The Tax Policy Center estimates that 65 percent of people paid less under the law and that just 6 percent paid more. (The rest saw little change to their taxes.)

[Anonymous]

Maybe the tax went down but the cutting of the deductions made us pay more.

[Anonymous]

Right. We get a tax cut early on. Remind us what happens by 2027, please.

[Anonymous]

Anonymous wrote:Face It: You (Probably) Got a Tax Cut

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

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.

Yet as the first tax filing season under the new law wraps up on Monday, taxpayers are skeptical. A survey conducted in early April for The New York Times by the online research platform SurveyMonkey found that just 40 percent of Americans believed they had received a tax cut under the law. Just 20 percent were certain they had done so. That’s consistent with previous polls finding that most Americans felt they hadn’t gotten a tax cut, and that a large minority thought their taxes had risen — though not even one in 10 households actually got a tax increase.

To a large degree, the gap between perception and reality on the tax cuts appears to flow from a sustained — and misleading — effort by liberal opponents of the law to brand it as a broad middle-class tax increase.

...

The Tax Policy Center estimates that 65 percent of people paid less under the law and that just 6 percent paid more. (The rest saw little change to their taxes.)

We certainly saw the benefit.

But let's wait to see actual numbers, not old estimates.

[Anonymous]

Anonymous wrote:Right. We get a tax cut early on. Remind us what happens by 2027, please.

We're SOL then, sadly. Save what you can?

[Anonymous]

The OP said that 1 out of 10 got a tax increase. Well, we happen to live in an area where it was probably more like 5 out of 10.

[Anonymous]

OP, let's assume that you are right and only 1 out of 10 got a tax increase.
Let's assume there are 100 million taxpayers. That is 10 million taxpayers that are paying more in taxes.
I am one of them and there are many in the DC area.

[Anonymous]

We paid $95 more in tax then last year. But our taxable income went up @40k while our actual income went up 0k. That’s going to hurt when the tax rate cuts phase out. HHI 185k, 3 kids.

[Anonymous]

Yeah, at the expense of the country’s budget deficit. It will catch up with us at some point.

[Anonymous]

Anonymous wrote:OP, let's assume that you are right and only 1 out of 10 got a tax increase.
Let's assume there are 100 million taxpayers. That is 10 million taxpayers that are paying more in taxes.
I am one of them and there are many in the DC area.

OK, let's continue that line of thought.

90 million taxpayers are paying LESS in taxes.

Have a nice day.

[Anonymous]

We stopped paying almost all our AMT penalty but lost almost all our savings in SALT penalty. So yes we got a tax cut, but in the low 4 figures on a 250kish total tax bill.

[Anonymous]

We’re paying $52,000 more with approximately same income. High HHI and not complaining, but true.

[Anonymous]

Did not happen. The rate reduction did not offset the deductions loss so my effective rate went up. And my local and property taxes went up so I was doubly screwed.

[Anonymous]

Anonymous wrote:We paid $95 more in tax then last year. But our taxable income went up @40k while our actual income went up 0k. That’s going to hurt when the tax rate cuts phase out. HHI 185k, 3 kids.

Our HHI was 178k, only 1k more than last year but our "taxable income" also was like 30k more, so we ended up paying $215 more than last year. I had to run the calculations both ways in turbo tax-ended up being way better on state taxes to itemize even though it was slightly worse on the federal side.

[Anonymous]

I’m extending our taxes so I don’t know for sure. But I did my parents’ taxes for them, and yes, their tax rate went down from 2017. Their taxable income was $130k in 2017 and they were in the 25 percent bracket (lowest). Their taxable income in 2018 was $180k and they were in the 24 percent bracket (second lowest). Deductions changed a bit, but overall 2018 was better for their bottom line. My husband and I make more so we’ll see.