You Probably Got a Tax Cut Even If You Don’t Feel Like It.
Have you gotten a tax cut this year? According to new figures from the Center for Tax Policy, most Americans actually paid less taxes under the Tax and Employment Cuts Act, but since many of us receive fewer refunds (or no refunds at all) it may not seem like it.
As reported by The New York Times :
The Tax Policy Center estimated that 65 percent of people paid less under the law and only 6 percent paid more. (The rest have barely changed their taxes.)
[…]
“Most people didn’t realize the increase in home wages, or at least didn’t associate it with the tax cut,” said [H&R Block analyst Nathan Rigney]. Some of them may understand this now when they file their tax returns, he said, but “a little consolation to find that you received a couple of thousand dollars during the year, but have already spent it.”
Unfortunately, despite the quote above, many of us have not received a “couple thousand dollars”. If you are in the middle fifth of Americans in income, that is, households with incomes between $ 47,110 and $ 77,552, according to the US Census, your average tax cut was only $ 780. Those with higher incomes received higher tax breaks, with the richest 1% of Americans receiving tax cuts in excess of $ 30,000.
So. Have you paid less taxes this year? Did this tax savings affect your salaries or did you get your money back? If you received a slightly higher salary in 2018, did you feel like you were getting a tax break – or do you still feel like you missed out on the promised tax cut?