There are plenty of arguments about wearing masks as there are against it. We felt we would just let this graph speak for it's self.
Thursday, July 23, 2020
Sunday, June 2, 2019
Because One is a Parasite
Wednesday, February 13, 2019
It's Not the Refund
In a recent posting on our Twitter page (www.twitter.comstarfishnews1) we posted about how receiving a smaller refund does not measure if you paid higher taxes or not. We felt the need to dive deeper into this matter because it seems so many people do not have the basic understanding of how our tax system works. Even US Senator Kamala Harris doesn't seem to understand that a smaller refund does not mean you paid more in taxes as she tweeted "The average tax refund is down about $170 compared to last year. Let's call the President's tax cut what it is: a middle-class tax hike to line the pockets of already wealthy corporations and the 1%)
Now Harris either does not understand that the size of your refund isn't a sign of how much tax you paid OR she likes to lie to her followers. We have noticed many left leaning sites and even the nightly news reporting over and over that refunds are down and your getting screwed. Let's do some basic math here and see if that is true.
First I think we need to explain the basics. You have some money held out of your paycheck each pay period to pay your federal tax. The government wants to make sure they get their money so they take some every time you get paid and hold it in a "saving account" with your name on it. This amount is found in box number 2 of your W-2. Then at the end of the year when you do your taxes you find out what your TAX BILL is. This amount is after certain deductions including a STANDARD DEDUCTION.which went up this year. Since the government knew that most people would owe less in taxes because of the increased standard deduction they did not take as much money out of your paychecks and put it into your "savings account". If you owed the SAME amount in tax as you did last year your refund would be smaller because they had LESS of your money. Your TAX BILL would still be the SAME. Which means...You did not pay more in taxes.
Because the standard deduction is larger your tax bill SHOULD be less than last year, so why are you not getting as much back? Lets look at the two examples below.
2017 2018
$1,000 withheld $800 withheld
$ 500 tax bill $400 tax bill
$ 500 refund $400 refund
If you were to believe Harris' tweet you would think that your taxes went up because you received a smaller refund in 2018. Truth is you payed $100 less to the government and the 1% didn't get your money...YOU DID!
We took a look at the taxes of three high school and college age workers. All working part time jobs. All will receive $100% of their withholding back this year. One paid $648 in taxes this last year. This year he will only pay $10. $638 more dollars in the pocket of a college student is A LOT!
Now of course there are many factors that go into your tax bill. It seems that most of the people being hit with a increase in their tax bill are those who live in high tax states, usually democratic run states who cannot deduct as much of their property and state taxes as in the past. So are their those who might find themselves with a higher tax bill...sure. Estimates are around 30 million. But to the lower income and average earner they should have more money in their pocket and not in the hands of the government which is always a good thing.
On a side note, we ran the numbers of a school teacher in Denver who claims she needs a raise. She claims that $50,000 a year is not enough. (That is another debate we should have) If she is single and has no children, her tax bill should also be lower than last year. So we ask this question. With all the Democrats talk about being for the low income workers and those struggling to make ends meet, doesn't this tax cut seem to be helping MOST people by letting them keep thier hard earned money or do you prefer to believe the political rhetoric?
As always, do your own research. Last years tax tables are still online. Check line 18 on your 1040 form for 2018. Then check your 2017 1040 form line 63. Which one was smaller. If it's 2018...you paid less tax. Congratulations.
(This is not tax advise, We are not tax experts, consult your accountant)
Follow us on Facebook at https://www.facebook.com/StarFishNews/
and www.twitter.com/starfishnews1
Now Harris either does not understand that the size of your refund isn't a sign of how much tax you paid OR she likes to lie to her followers. We have noticed many left leaning sites and even the nightly news reporting over and over that refunds are down and your getting screwed. Let's do some basic math here and see if that is true.First I think we need to explain the basics. You have some money held out of your paycheck each pay period to pay your federal tax. The government wants to make sure they get their money so they take some every time you get paid and hold it in a "saving account" with your name on it. This amount is found in box number 2 of your W-2. Then at the end of the year when you do your taxes you find out what your TAX BILL is. This amount is after certain deductions including a STANDARD DEDUCTION.which went up this year. Since the government knew that most people would owe less in taxes because of the increased standard deduction they did not take as much money out of your paychecks and put it into your "savings account". If you owed the SAME amount in tax as you did last year your refund would be smaller because they had LESS of your money. Your TAX BILL would still be the SAME. Which means...You did not pay more in taxes.
Because the standard deduction is larger your tax bill SHOULD be less than last year, so why are you not getting as much back? Lets look at the two examples below.
2017 2018
$1,000 withheld $800 withheld
$ 500 tax bill $400 tax bill
$ 500 refund $400 refund
If you were to believe Harris' tweet you would think that your taxes went up because you received a smaller refund in 2018. Truth is you payed $100 less to the government and the 1% didn't get your money...YOU DID!
We took a look at the taxes of three high school and college age workers. All working part time jobs. All will receive $100% of their withholding back this year. One paid $648 in taxes this last year. This year he will only pay $10. $638 more dollars in the pocket of a college student is A LOT!
Now of course there are many factors that go into your tax bill. It seems that most of the people being hit with a increase in their tax bill are those who live in high tax states, usually democratic run states who cannot deduct as much of their property and state taxes as in the past. So are their those who might find themselves with a higher tax bill...sure. Estimates are around 30 million. But to the lower income and average earner they should have more money in their pocket and not in the hands of the government which is always a good thing.
On a side note, we ran the numbers of a school teacher in Denver who claims she needs a raise. She claims that $50,000 a year is not enough. (That is another debate we should have) If she is single and has no children, her tax bill should also be lower than last year. So we ask this question. With all the Democrats talk about being for the low income workers and those struggling to make ends meet, doesn't this tax cut seem to be helping MOST people by letting them keep thier hard earned money or do you prefer to believe the political rhetoric?
As always, do your own research. Last years tax tables are still online. Check line 18 on your 1040 form for 2018. Then check your 2017 1040 form line 63. Which one was smaller. If it's 2018...you paid less tax. Congratulations.
(This is not tax advise, We are not tax experts, consult your accountant)
Follow us on Facebook at https://www.facebook.com/StarFishNews/
and www.twitter.com/starfishnews1
Subscribe to:
Comments (Atom)