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Taxpayers paid over $90 Billion More In Taxes Under New Bill

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  • Avatar mapplebum 
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    Yahoo Finance Article

    “..after refunds, the IRS collected about $93 billion more from individual American taxpayers than it did in 2017. Interestingly, that number stands close to the tax break amount that corporations received from the TCJA in 2018. Last year, big businesses paid $91 billion less in taxes than they had in 2017, prior to the new law’s passage.”

     

    “According to analysis from the Tax Policy Center, 65% of Americans received a tax cut from the Tax Cuts and Jobs Act (TCJA) while roughly 6% paid more. And the law, passed in December 2017, was widely criticized as a boon for the wealthy and large businesses which saw their corporate tax rate drop from 35% to 21% last year.

    The center noted: “The lowest income households (those making less than about $25,000) got an average tax cut of about $40. Middle-income households (who made between about $48,000 and $86,000) paid about $800 less. Those in the top 1%, who made $733,000 or more, got an average tax cut of about $33,000.”

    Neat little map at the bottom indicates that I live in one of the worst states for taxes in the country. Alaska does look beautiful…

    #227004 Reply
    Liked by snowcanyon
    Avatar Larry Ragman 
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    Yahoo Finance Article

    “..after refunds, the IRS collected about $93 billion more from individual American taxpayers than it did in 2017. Interestingly, that number stands close to the tax break amount that corporations received from the TCJA in 2018. Last year, big businesses paid $91 billion less in taxes than they had in 2017, prior to the new law’s passage.”

     

    “According to analysis from the Tax Policy Center, 65% of Americans received a tax cut from the Tax Cuts and Jobs Act (TCJA) while roughly 6% paid more. And the law, passed in December 2017, was widely criticized as a boon for the wealthy and large businesses which saw their corporate tax rate drop from 35% to 21% last year.

    The center noted: “The lowest income households (those making less than about $25,000) got an average tax cut of about $40. Middle-income households (who made between about $48,000 and $86,000) paid about $800 less. Those in the top 1%, who made $733,000 or more, got an average tax cut of about $33,000.”

    Neat little map at the bottom indicates that I live in one of the worst states for taxes in the country. Alaska does look beautiful…

    Click to expand…

    One issue with these sorts of absolute number comparisons is that they include no regressions for controls. For example, what was the total income against which taxes were collected in 2017 and 2018? If higher in 2018, then this might not be as surprising. (It might be that more taxes were collected relatively as well as absolutely, but I can’t tell from the data.) The big business data is interesting though. I would have expected in year one that there would have been significant tax revenue generated by the repatriation of trapped overseas funds.

    #227040 Reply
    Liked by CM
    The White Coat Investor The White Coat Investor 
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    Does this suggest we had been on the far right side of the Laffer curve? Rates were cut and revenue went up?

    Site/Forum Owner, Emergency Physician, Blogger, and author of The White Coat Investor: A Doctor's Guide to Personal Finance and Investing
    Helping Those Who Wear The White Coat Get A "Fair Shake" on Wall Street since 2011

    #227042 Reply
    Liked by Craigy, Tangler
    Lordosis Lordosis 
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    Those making less then 25k got an average tax cut of $40.
    I think most households making under 25k pay very little in tax since the standard deduction is 24k.

    “Never let your sense of morals prevent you from doing what is right.”

    CM CM 
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    For example, what was the total income against which taxes were collected in 2017 and 2018? If higher in 2018, then this might not be as surprising.

    Click to expand…

    Yes. GDP and income grow in years without recession, so taxes will rise holding all else equal.

    Taxpayers paid over $90 Billion More In Taxes Under New Bill

    Click to expand…

    This is a misleading headline.

    According to analysis from the Tax Policy Center, 65% of Americans received a tax cut from the Tax Cuts and Jobs Act (TCJA) while roughly 6% paid more.

    Click to expand…

    The quote above is a better summary of the effect on taxpayers.

    I know the new tax law benefited us.

    Erstwhile Dance Theatre of Dayton performer cum bellhop. Carried bags for Cyd Charisse (gracious). Hosted epic company parties after Friday night rehearsals.

    #227047 Reply
    Avatar Dusn 
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    Does this suggest we had been on the far right side of the Laffer curve? Rates were cut and revenue went up?

    Click to expand…

    That would make sense if they were reporting rates in terms of percentage and revenue went up in absolute numbers.   But they seem to be reporting that everyone paid less in terms of average absolute numbers and somehow the government made more in absolute numbers compared to 2017.   The numbers in the article don’t make sense to me.

    Also that map looks bizarre as well:  is it implying that Texas was worse for taxpayers than California?

    #227051 Reply
    Liked by Tangler, Hank
    Vagabond MD Vagabond MD 
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    medical school scholarship sponsor

    Does this suggest we had been on the far right side of the Laffer curve? Rates were cut and revenue went up?

    Click to expand…

    That would make sense if they were reporting rates in terms of percentage and revenue went up in absolute numbers.   But they seem to be reporting that everyone paid less in terms of average absolute numbers and somehow the government made more in absolute numbers compared to 2017.   The numbers in the article don’t make sense to me.

    Also that map looks bizarre as well:  is it implying that Texas was worse for taxpayers than California?

    Click to expand…

    Yeah, I did not understand the math, either. On average, people in all income categories paid less (by varying amounts), but somehow in aggregate more was collected? It does not make sense to me.

    As for myself, there are too many moving parts and differences between 2017 and 2018 for me. Best I can tell, I paid about $24,000 less in Federal income tax 2018.

    "Wealth is the slave of the wise man and the master of the fool.” -Seneca the Younger

    #227077 Reply
    Liked by Craigy, Tangler
    Lordosis Lordosis 
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    I paid more tax in 2018 then in 2017. However I made a lot more money.
    My percentage went down slightly

    “Never let your sense of morals prevent you from doing what is right.”

    #227078 Reply
    Liked by Craigy, Tangler, Zaphod
    ENT Doc ENT Doc 
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    Agree that you need to know how much we would have collected holding 2017 tax laws constant.  While $90B more came in during 2018 this could have represented a net reduction from baseline.  Or more.  You need to have something to compare the $90B to is the point, as others have noted.

    Oh, but politicians of all shades carelessly signed on to reckless spending bills so regardless of the revenue side our spending increased drastically.  These people should be put in jail for their incompetent management of our nation’s fiscal situation.

    #227093 Reply
    Avatar Dusn 
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    You’d also have to factor inflation if it’s comparing 2017 to 2018. Total Tax revenue is 3-4 trillion dollars? And if inflation is 2.4% then how much of that 90 billion could be due to inflation…
    Regardless, the data in this article doesn’t make sense and its conclusions seem not well thought out.

    #227096 Reply
    Avatar docnews 
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    Clickbait. It was because there was 1.5% more filers. Maybe some immigration isn’t bad after all… (Obviously better if it’s legal)

    #227114 Reply
    Liked by Craigy
    Avatar bean1970 
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    terrible headline.  as in the article buried there were more filers which said made up the majority of the increased collections.  Yes, taxpayers paid MORE at tax time, but their tax liability was LESS for the entire year…..and everyone was in a tizzy about the changes in withholding….last time I checked the IRS has changed withholding every year but the changes (primarily to account for inflation) are small and mostly unnoticeable to people …  these changes in 2018 were just more noticeable…but apparently most tax payers didn’t notice…go figure……

    #227118 Reply
    Liked by Anne, Tangler
    Avatar Tangler 
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    i wish taxes were less complicated.

    #227150 Reply
    Craigy Craigy 
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    Some other good titles for this thread would be:

    Taxpayers no longer eat McRib, discontinued under new tax bill.

    Taxpayers in California ravaged by wildfires under new tax bill.

    Taxpayer Saints fans robbed of super bowl appearance under new tax bill.

    Taxpayers paid tax under new tax bill.

     

    LEVEL 1 WCI FORUM MEMBER.

    jfoxcpacfp jfoxcpacfp 
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    i wish taxes were less complicated.

    Click to expand…

    I don’t 😉

    Johanna Fox Turner, CPA, CFP, Fox Wealth Mgmt & Fox CPAs ~
    http://www.fox-cpas.com/for-doctors-only ~ [email protected]

    #227166 Reply

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