Millions of Americans may be denied a refund check during tax season this year due to the tax scam enacted by Donald Trump and his Republican allies in Congress.
According to The Huffington Post, “The rush to write and carry out the new tax law could have bad consequences for millions.”
The report cited one example of a New York resident, Ben Williams, who received a $750 refund last year and now owes $4,600 this year – a turnaround of over $5,000.
HuffPo noted that while the Trump-GOP tax scheme did simplify the tax code and cut rates, the savings could be offset by the number of deductions that were eliminated, which Americans rely on to reduce their taxable income.
More from the report:
The Tax Cuts and Jobs Act cut rates for taxpayers at every income level and simplified the tax code for most filers. Part of that simplification meant getting rid of a lot of deductions, which people use to reduce the amount of their taxable earnings.
One of the most controversial changes limited the amount of state and local tax payments that could be deducted. Previously, a tax filer could reduce their taxable income by subtracting the income taxes they paid to their state and local governments. The law capped such deductions at $10,000. Williams said he usually pays more than three times that amount in state and local levies.
While preparing to file his taxes through the H&R Block website this week, Williams said the blood drained from his face when he realized how much he would owe. He had anticipated getting another refund that he would put toward a vacation.
Blue state residents will be hit hardest
One key element of the Trump-GOP tax scam is that those who will be harmed most are blue state residents.
According to the Huffington Post report, one reason Williams owes the government money this year, as opposed to getting a refund check, is “because Republicans targeted wealthy (and heavily Democratic) metropolitan areas for tax hikes and also because of how President Donald Trump’s administration implemented the law.”
As a result, “millions more households” will be “getting a bill from the IRS” and many of those households “just so happen to be clustered in states where people tend to vote for Democrats.”
So not only was the Trump-GOP tax scheme a handout to the wealthiest individuals and corporations, but it was a hastily crafted political document that will disproportionately hurt this president’s political opponents.
It’s bad economics and despicable politics.
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