Chicago Tribune thinks it’s a bad thing that people kept more of their own money from their paychecks, instead of giving the government an interest free loan to be paid back in the form of a refund.
“There is a difference between a tax liability and a tax refund,” the Treasury Department said in a news release last week. “The size of someone’s refund is a separate issue from whether their taxes have increased or decreased.”
Whether or not they come out ahead under the new tax law, many taxpayers count on their annual refund as a windfall to pay off credit card balances or make large purchases. When it’s not there, or, worse yet, when they need to write a check to the IRS, it can be a blow to their budgets, according to Dan Rahill, a tax partner with Chicago-based accounting firm BDO.https://www.chicagotribune.com/business/ct-biz-tax-firm-prepare-bad-news-refund-20190304-story.html
It’s interesting that the media would be focusing on the size of the refunds without mentioning one of the biggest factors eating into your refund if you live in a high tax liberal state…SALT.
The state and local tax (SALT) deduction allows taxpayers of high-tax states to deduct local tax payments on their federal tax returns. The new tax plan signed by President Trump, called the Tax Cuts and Jobs Act, instituted a cap on the SALT deduction. Starting with the 2018 tax year, the maximum SALT deduction available is $10,000. Previously, there was no limit.https://smartasset.com/taxes/trumps-plan-to-eliminate-the-state-and-local-tax-deduction-explained
So, if your tax liability went up this year, guess who you can likely blame…that’s right…your state leadership. They’ve been hiding their fiscal recklessness behind Uncle Sam’s printing press. No More! Trump and the GOP pantsed them.
You wanted a transparent government? Well here it is, in your face.