Quote:
Originally Posted by DaFace
The problem is that taxes are stupidly confusing, so most people don't really understand them well enough to pay close attention to what their employers are doing with their withholdings. Most "normal" people did, indeed, pay fewer taxes this past year, but most also didn't withhold enough, so overall people are getting less back in refunds than they're used to. That's causing a lot of angst, as a lot of people use them as a sort of forced savings account that then allows them to catch up on some things once a year.
In other words, yes, people paid fewer taxes this year. But most just absorbed the extra $50 per paycheck without really noticing it but are now short the extra $500 they were typically used to at the end. To 90% of people, that feels like the tax bill screwed them over even when it really didn't.
Here's a good article that talks through some of the numbers:
https://www.cnbc.com/2019/02/15/tax-...ont-panic.html |
Do they really use it as a sort of savings account? Most people I see around here are using tax refunds like a 2nd Black Friday. In fact, Walmart will have a massive electronics sale any time now.