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I'd like to note that the article makes no claim regarding whether the tax cut saved households money. Rather, we now have the numbers that show a huge swing t
by jdmichal 7y ago
I'd like to note that the article makes no claim regarding whether the tax cut saved households money. Rather, we now have the numbers that show a huge swing towards households owing taxes at the end of the year. That says nothing about the tax charged them, and everything about their withholding.
- slg 7y agoThe tax bill was designed in a way to make people's previous withholdings inaccurate (although theoretically more accurate overall). That was politically motivated for two reasons. People were more likely to see a positive (or less likely to see a negative) impact on their paycheck from the tax bill passing. Republicans have also historically wanted to make the act of paying taxes more painful for the average American on the belief that it would generate political motivation for lowering taxes. Tweaking the withholding rules to result in larger payments (or lower refunds) when filing taxes is part of that plan. Both those points have nothing to do with whether the overall tax plan was beneficial for the average American or the country at large.
- jvanderbot 7y agoWhich, by the way, was a suprise due to the mostly-unpublicized changes to the withholding rates. Add in tax penalties and it's a very unwelcome suprise for all but the most vigilant / those that pay people to manage their money.