Reasons it doesn't feel like the Trump Tax cut benefited you

Reasons it doesn't feel like the Trump Tax cut benefited you

The 2017 tax cuts had a bad and fair press, and it is expectedly so. Its proponent promised to increase investment and wages and also assured everyone it would pay for itself of which none of it has happened. However, the coverage was not cynical enough. The story you read most often is this: the tax cuts have led companies to make money at home, but they used it to buy back shares instead of raising their wages, and the growth rate was modest. That does not sound right, but it's even better than the reality: no money was taken out at home, and the tax cuts probably reduced the national income. At least 90% of Americans will become freer thanks to this reduction.

Last April, during the West Virginia tax cut, President Trump promised: "This will be the last time in April that this old and complex form of taxation will be filled."  Mr. Trump met with Greg Palmer, a non-profit fundraising fund in Seattle that would naturally be attracted to tax simplification. It represents about 3% of taxpayers who only pay taxes.

"The redesign was not intuitive," wrote Palmer in an email. "More round trips per ad: a terrible idea, shorten the form.

But, of course, people with a simple income (just a salary and a non-deductible salary) will save time completing the short form. People have to go through the same question and answer format to see if they have to go through one of the six new 1040 programs, let alone standards A, B, and so on. Although tax cuts were never the political outcome, they hoped for, but as the income tax season begins this year, these gains are now under threat. In a strange change, a tax reform that saves money for most Americans gets negative reviews, as the return experience does not depend on the advertising used to sell the tax package to the public.

You still have the theoretical part of the law, and then it's different when you have to write on paper and prepare someone's tax statement. If you talk to a tax professional, he will tell you that it will be a complicated exercise. Last year, at that time, people who filed for prepayment earned an average of $ 2,035, according to the IRS. This year, as of February 1, they received only $ 1,865, down 8.4%. But it's mainly due to the wrong perception. This is due to the confusion of last November when research showed that nearly half (47%) of Americans expected tax cuts to mean a higher refund, but it did not work out as planned.

Many Americans had already benefited from most tax cuts last year when the IRS withdrew less money from their salaries. Thus, when employees prepare their taxes, they may find that tax refunds are less critical because they are less deducted from salary.

So there is a whole class of people whose federal taxes have been raised because Trump's tax law created a new set of conquerors and losers. American will end up pay more this year, even though the standard deduction is higher, the reason being that although the standard deduction has doubled, many of the exemptions taxpayers could have had last year were limited or eliminated this year.

Meanwhile, some of the biggest tax cut beneficiaries and potential cheerleaders could not yet pay their taxes because of the IRS's delays in publishing the final rules.

For example, the agency has recently issued a final settlement on the deduction of qualified business profits, and tax authorities are still waiting for final regulation on interest rate cuts. These regulations are fundamental for transfer companies: business owners who record corporate profits with their tax return, which are probably the primary beneficiaries of the tax cuts.

There will be more people who will have to spend extra time this year to finish their statements. As a result, Trump's initial tax cuts, where the online registration system has fallen, may become more negative. 

Legislation has never been prevalent. Even before Congress agreed to tax cuts, 56 percent of Americans rejected it, and 29 percent approved it, according to a Gallup poll. However, last fall, tax cuts benefited from increased support: only 46% were rejected; 39% agreed. Of course, the perception of tax cuts is strongly influenced by policies. The same Gallup poll conducted last fall found that 76% of Republicans had approved the tax plan, compared with only 8% of Democrats and 34% of independents.

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