May, 2019

MY TAX REFUND WAS WAY, WAY DOWN - BOO, HOO, HOO

We're all glad that Tax Day - April 15th - has come and gone.  There is always a certain amount of complaining at tax time.  But this year it was over the top - and for what?  The big complaint, that actually was covered in the news media for several months, was that tax refunds were down dramatically from previous years.  Duh!

Back in 2017, Congress enacted a dramatic tax reduction.  That went into effect in January of 2018, with new tax withholding schedules for employers.  The new schedules called for less money to be withheld from employee checks each pay period, because their taxes for the year would be much lower.  That means that all year long, employees got more money in their pay checks, even if they did not get a raise.  It wasn't a lot each week.  Ten dollars more per week would correspond to 520-dollars less withheld. Twenty dollars
more per week would mean $1,040 less withheld.

It doesn't take a rocket scientist or a brain surgeon to figure out that if you put less in, your're going to get less back!  So, why all the spitting and sputtering?

I never could figure out why people want to use the Federal Government like a bank.  Some even have more withheld from their pay checks than necessary, just so they can get more back.  Stupid!  Stupid!  Stupid!  Why would anyone do such a thing; tying up their money without any chance of getting at it, except for one time a year?  The government is not a bank!  Take that same amount of money and put it in an interest bearing account in a bank or credit union where it will earn interest; and you can get to it if something unexpected comes along.

The dumbing down of America.  I don't know.  But the grumbling over smaller tax refunds makes me think that it may have been a reality!  [I hope you take that as "tongue-in-cheek."]
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