Unpacking the tax controversies
PERRY BEEMAN Feb 27, 2019 | 3:15 pm
1 min read time
258 wordsAll Latest News, Government Policy and LawThe nation’s media have dished many stories about Americans complaining that their tax refunds are smaller than expected this year following the 2018 tax cuts. The Internal Revenue Service has noted that the average refund through mid-February was down 17 percent, or by more than $500.
Here is a collection of stories out there that try to put perspective on this. It may not be as bad as some think.
New York Times: A buck in the hand is better than a lump sum later. “Which would you rather have: an extra $50 in each biweekly paycheck, or a $1,300 refund payment in a single lump sum in April of the following year? The simple idea of the time value of money — that a dollar today is more valuable than a dollar tomorrow — suggests you should want the higher weekly paycheck,” the Times reported.
MarketWatch: New York Gov. Andrew Cuomo is asking President Donald Trump to reconsider the lid on federal deductions for state and local taxes, known as SALT, because it is leading wealthy residents to move out and cost New York $2 billion in revenues recently.
CBS News: Smaller refunds don’t necessarily mean you are paying more in taxes. In New Jersey, a high-tax state, 85 percent of one accountant’s clients are getting a tax break. Again, lower withholding meant many got more money upfront instead of a big refund.
Here is a collection of stories out there that try to put perspective on this. It may not be as bad as some think.
New York Times: A buck in the hand is better than a lump sum later. “Which would you rather have: an extra $50 in each biweekly paycheck, or a $1,300 refund payment in a single lump sum in April of the following year? The simple idea of the time value of money — that a dollar today is more valuable than a dollar tomorrow — suggests you should want the higher weekly paycheck,” the Times reported.
MarketWatch: New York Gov. Andrew Cuomo is asking President Donald Trump to reconsider the lid on federal deductions for state and local taxes, known as SALT, because it is leading wealthy residents to move out and cost New York $2 billion in revenues recently.
CBS News: Smaller refunds don’t necessarily mean you are paying more in taxes. In New Jersey, a high-tax state, 85 percent of one accountant’s clients are getting a tax break. Again, lower withholding meant many got more money upfront instead of a big refund.
CNBC: If you hit the current $322 million Powerball jackpot, you’ll pay $47 million in taxes. So there’s some perspective.
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