“Nothing from Nothing” is the title of a Billy Preston song from 1974. In light of the way the MSM is defaming the President’s Tax cuts it’s become relevant again.
There’s a Headline on the Drudge Report as I write this which reads:
“Tax filers seeing smaller refunds.”
For everyone but Alexandria Ocasio-Cortez this should be a no brainer. (or is that redundant?)
The “tax cuts” were exactly that, a reduction in the amount of income tax the average wage earner was required to pay the Government.
A single person earning 11.00 per hour working an average of 40 hours a week and claiming only one dependent was receving roughly 50 dollars additional per pay check (if paid bi-weekly, 25 Dollars if paid weekly) or 100.00 per month after taxes.
In other words, they were paying less into the system so of course they’re going to get less back.
In the meantime they pocketed another 1,200.00 over the course of a year.
That may not sound huge, but when you’re living paycheck to paycheck that’s a significant difference.
It must also be taken into account that many of these people saw a minimum jump of two Dollars in their hourly wage.
Because their Employer’s also received a tax cut and in order to reduce turnover and incentivize loyalty many of these Companies passed those savings along to their employees.
Not to mention that many also received a one time bonus in the range of 300 to 500 Dollars depending on their length of service.
All of this was win win win for the bottom tier of the workforce who also received the biggest benefit from the new code.
A person earning 20,000.00 per year wasn’t even taxed on the first 9,000.00. Add on the standard deduction and plug in the new tax rate and they were looking at paying a total of 10% on 2,000.00 or 200.00 out of a gross of 20.
Claiming only themselves they will still be receiving a significant refund.
For all practical purposes other than FICA which is their contribution to Government benefits such as Social Security, and they’ve effectively been removed from the tax roles altogether.
If they’re Married their rates will be higher due to the so called “Marriage Penalty” which the Congress was unable to eliminate thanks to a lack of cooperation from the Democrats for whom the mere concept of tax reduction is anathema.
To now come back and bitch that refunds will be lower defies the laws of mathematics.
Less paid in means less given back, simple as.
Categories: Media Bias