Reply to Trump voters getting tax shock and regretting their votes

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Interesting that the press is touting lower refunds--not lower tax payments.........

I remember the first year I paid taxes--it was the refund that counted.  As I got [b]wealthier[/b], I got wiser.[/quote]

Fixed that for you.

Most Americans don't have enough cash to afford a $500 emergency. Their tax refund is the biggest single payment they receive all year. And hence why it is used by families to make major purchases: a down payment on a new car, a new washer/dryer set, or to finally replace the roof on their house.

[/quote]

They would be wise to pay less taxes with each paycheck instead of loaning their money to the government and then getting it back, interest free, and feeling like it’s a bonus. [/quote]

You are so blind to the privilege that lets you say that.[/quote]

That is not privilege.

Anyone can go into the local library, go to the IRS withholding calculator at the beginning of the year with a pay stub in hand and figure out their withholding so that they have bigger take home pay each week.  That is something I mentor my junior employees to do each year.

https://www.irs.gov/individuals/irs-withholding-calculator

Now I do understand that withholding forces people to "save" who might not otherwise, but employers should encourage that anyways by offering to move money to a savings account for them upon starting employment, much like how requring people to opt out from 401k savings plans instead of opting in resulting in more retirement savings.[/quote]

"regular people" (not DCUMers) set up their W4 long ago.  They didn't think they would need to change it because they made the same money for year after year and had the same withholding and same refund.  They were expecting any withholding reduction would be equal to the tax cut.  So you get $1,200 tax cut?  That's $100 less withholding each month and the same overpayment/refund when they file and why wouldn't they have thought that?

As an example, my brother makes $30k a year.  He always gets about $2,000 a year refund.  He isn't good at saving and knows it.  He likes over-withholding so that he can receive a large refund and use it on expensive purchases.  This year his refund was only $1,750 which is still considerable but somewhat less than he was expecting.  He wasn't angry but he certainly wasn't happy about it (I had warned him this might happen and suggested he use the calculator but chose not to).  I took a look at his taxes and his total tax did go down so he got a tax cut but withholding went down more.  His total tax went down by $180 but his withholding went down about $430 which is why the refund went down.  The withholding tables were screwed up.  He doesn't have any deductions or credits so the reduction in withholding should have been the same as his reduction in tax.

He's lucky that he always got refunds.  The people that "don't want to give the government an interest free loan" are the ones being screwed over and owing money.  If he was of that mindset, he'd be writing a check for $250 and wouldn't be able to get new tires for his truck.

People can say what they want about lower total taxes but they completely ignore the fact that the withholding tables reduced withholding by more than the tax reduction.  That's why people are calling it a tax scam.[/quote]

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