Millions of Americans are about to watch their tax refund shrink under Trump’s new code — some already have
Now that President Trump’s new tax code is in place, millions of Americans are discovering that it’s not exactly panning out for them the way he and the rest of the GOP promised. The IRS confirms the buzz that tax refunds seem a bit low this year by releasing a report showing that the average refund is 8.4 percent lower than last year, dropping from $2,000 last year to $1,865 this year.
Not only are returns lower than usual, it also seems that people are dragging their feet filing their taxes — possibly because they’re suspecting it won’t be super great news? Returns are currently down 12.4 percent compared to last year. Now, disgruntled citizens are taking to Twitter using the hashtag #GOPTaxScam to vent their frustration at being screwed over.
Millions filling out their 2018 taxes will probably be surprised to learn their refunds will be less than expected or that they owe money after years of receiving refunds.
— Kyle Griffin (@kylegriffin1) February 11, 2019
It was the December 2017 overhaul to the existing tax code, enacted by the Trump administration without a single Democratic vote, to blame for the changes to this year’s filings. Changes to the tax laws that are resulting in lower refunds include a new limit on property and local income tax deduction among many other factors. It’s kind of confusing, but a number of American families are in for a rude awakening when they file this year. The ones that already have are definitely not thrilled.
In order to pay for the #GOPTaxScam, I’m going to have to suspend all deposits to my son’s college fund and my retirement fund for at least the next twelve months.
That covers 2018.
If my 2019 taxes are the same, rinse and repeat.
My and my sons future are funding the top 1%
— Red (@Redpainter1) February 11, 2019
Thanks to the #GOPTaxScam, tax refunds are about 8 percent smaller so far this year compared to 2018. A lot of people who voted for Trump are NOT happy about it. Retweet if you do NOT feel sorry for them.
— Jon Cooper (@joncoopertweets) February 11, 2019
Trump voters are like, extremely upset.
— Mark Blei (@markblei) February 4, 2019
— Vincent Truman (@vincenttruman) February 4, 2019
Starting to see a lot of “omg why do I owe taxes this year!?!?” stories rolling into my timeline. #GOPTaxScam
— ʀᴏɴɴɪᴇ ᴡᴇʙʙ (@RonnieTWebb) February 4, 2019
#TrumpTaxScam did my taxes today, got fucked, thanks for nothing Trump
— Jim Bridgmon (@bridgmon_jim) February 7, 2019
Zero change in income or deductions for 2018, tax refund is less than half of what it was in 2017. I am glad my money is going towards someones 3rd yacht in the hamptons. #TrumpTaxScam
— JPResse (@ResseJp) February 6, 2019
#GOPTaxScamstories #GOPTaxScam Last year I was able to get $2700 in Tax returns but all my deductions are gone this year and was a net -$350. Only saving grace was increased child Tax credit which kept my refund in the positive,
— Dexternights (@dexternights) February 9, 2019
The changes are hitting real families and it’s not a fun surprise. Sal Ramirez, a 20-year-old packaging designer in San Gabriel Valley, CA tells The Washington Post about the impact the surprise change had on his refund this year. “I am really frustrated with my refund this year. I was expecting good chunk of change. I was going to put it toward buying a car,” he says. Last year, he received $1,200 for his refund and this year, only $900. He says he will have to wait a little longer on buying that car.
According to NBC News, the Trump tax changes came with a promise that families “would get a $4,000 raise” while pushing for the new laws to go into effect. Howard Gleckman, senior fellow at the Urban Brookings Tax Policy Center, says that it’s not really about the refund, but about the taxes a family pays. “Americans are obsessed with their refunds. What really matters is whether your taxes went up or down, not whether your refund went down,” he states.
He also realizes that early filers, which is all the data available at this point, are probably needing and counting on that refund check for their financial situation. “The people who file early are the people who generally count on these refunds. They may have an expectation of higher refunds,” he says.
Trump’s plan meant rates were cut for individuals — and corporations. The Government Accountability Office says that 4.6 million fewer filers would receive refunds this year while another 4.6 million would probably owe money when they hadn’t in the past. Basically, this “overhaul” is turning out to be a huge broken promise from a man who’s probably never kept one in his life.
Let’s just hope those losing money this year remember it at the polls next year.
The post Under Trump’s New Tax Code, The Average Refund Is 8.4% Smaller appeared first on Scary Mommy.