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  • Bob Brooks

Are You Paying More In Taxes This Year?

If you are voting against socialism, or worse, in this next election, you want the optics that President Trump creates to be a good thing. President Trump can spin a story like no other politician. He is a master at branding and promoting. That is his brand of politics. When he signed his tax cuts bill into law, the optics to most looked good. After all, who doesn't like a good tax cut especially the way President Trump was spinning it.

The more I looked at it, the less I liked it just from an individual standpoint. It seemed that yes there was a tax cut for sure. Yet, at the same time, tax breaks were also eliminated. 

Thus the benefit of the tax cuts were greatly reduced because of the elimination of the current tax deductions.  

Then I have heard story after story of how people are finding that they are paying more taxes. Then there is this story.

"Spring tax refunds typically give the economy a boost as the money rolls in and people either pay down debt or go out and spend, so economists and analysts pay close attention to the size of these windfalls.

A new research note from UBS finds that net payments to households are now running below its economists’ forecast, a shortfall of $11.5 billion of the $20 billion in extra cash that the economists had expected compared to last year.

As of the latest IRS numbers, 27 million returns have been processed and the average refund is $1,949, down 8.7% compared to last year."

None of the above comes down to good optics. The problem is that we are only in February and most people wait another 4 or 5 weeks before dealing with their taxes. We are early in tax season. If these numbers continue to look this way and reflect a different reality, President Trump has some spinning to do. It doesn't matter how many tax cuts in that bill were designed to benefit the economy. If they aren't benefiting the consumer, he missed the mark.  

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