As the US economy continues to roar, President Trump has been exalted as the CEO-in-Chief that we’ve always wanted and needed.
Consumer confidence was one of the first indicators of just how powerful a fiscal force he would be as President. In the weeks and months after Trump was sworn into office, this index soared. Where Obama could make an argument for some of his outgoing policies at least setting The Donald up for success, (maybe), there is no credit for 44 in that consumer confidence figure.
And, as we all know, when consumer confidence is high, the rest of the economy feels little less coarse. The friction of our fiscal world lessens, like the “lubricating” effect of alcohol on one’s language.
President Trump then sought to bring this fiscal expertise to the tax game, hoping to spur the economy with his golden-heeled boots.
Working class Americans aren’t so sure about this one, however, as their IRS filings begin to take shape.
The first tax filing season under the new federal tax law is proving to be surprising, confusing — and occasionally frightening — for some Americans, especially those accustomed to getting money back from the government.
Take Andy Kraft and Amy Elias of Portland, Oregon. The couple had grown comfortable getting a small refund each year, a few hundred dollars or more. Then they found out they owe $10,160 this year.
“I will never forget the moment, I thought ‘We look good’ and then we added in the next W-2 and my jaw hit the floor,” Kraft said. “There was no way I wanted to believe that what I was looking at was accurate.”
So what is the issue?
President Trump promised a reduction in taxes with the new law. And by most measures, the majority of Americans will see one. The nonpartisan Tax Policy Center projected the tax law would reduce individual income taxes by about $1,260 on average, although it benefits higher earners more.
So not everyone will see a massive tax bill or a drop in their refund. Some people already saw the benefit in the form of bigger paychecks. That’s because the law forced employers to change what they withheld. But the system is far from perfect, and many workers didn’t have enough in taxes set aside. Now, the IRS wants that money.
In addition, the law also eliminated personal exemptions, increased child credits, limited popular deductions and generally upended many familiar practices that determine what happens at tax time. That has taxpayers feeling a bit unmoored.
Given the length of time in which these tax codes remain in place, there is no doubt that the 2019 filing year will be a far smoother and more predictable experience for many Americans.
The post Americans Not Happy with Trump Tax Plan’s Effect on Returns appeared first on Flag And Cross.