November 23, 2020

2020 Tax Rates

2020 Tax Rates well now to your tax returns that in my tax returns the IRS saying so far individual tax refunds only slightly smaller than last year about 20 dollars less than last year but 1.6 million fewer people are getting refunds so. Will any of this have an impact on how consumers are spending to National Taxpayers Union.

Executive vice president Brandon Arnold Brandon I did my taxes last weekend and guess what I'm one of those folks who has to, pay money I don't think I have I've been getting a refund I believe for every year over the past thirty. Years and it.

Bothers me but my accountant sat down with me said look this is what you paid in 2017 this is. What you paid in taxes in 2018 you're actually making out better in 2018 even though you have to pay you have to pay money rather than getting a. Reef and I think that's where a lot of Americans are finding themselves yeah that's absolutely correct the key here is your two overall tax liability relative last.

Year not where your refund stands from this year to last year to previous years because at the, end of the day that is just a reconciliation between what you are expected to owe and what, you are paying throughout the course of the year and what you're actually owe. When you sit down to do your taxes in April as as many of us do ensure there are, more people now that are seeing smaller refunds or maybe not even getting. A refund at all but if they go back and compare their tax liability to their 2017 tax, liability to their 2018 tax liability eighty ninety percent of those folks are actually getting a tax reduction and that's a positive law I've been getting I've been getting more money every week in my paycheck and.

But you do there is that illusion when. You get a refund that it's found money and and that illusion very often leads people to spend. It rather than save it I don't know what the exact figures are but the bottom line is that that, if fewer people are getting refunds will it have will the economy get less of a kick in the consumer spending side well that kick is very overrated I.

Think if you talk to most economists that's kind of.

A flash in the pan in terms of the big picture of the economy what's more important is. Using a tax code to incentivize wise decisions like investment like savings and things like that and that's what we've seen since this tax tax reform bill took effect at the beginning. Of last year we've seen more investment the United State economy and that's why we've seen strong job numbers strong economic, performance it's the big picture here not the flash in the pan that may occur if somebody gets a five hundred or a thousand dollar refund. Check and goes off to. Target or Amazon or wherever and and spends that money right away that's good but it's not.

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