There has been a rise in reports about how some folks may be disappointed in their Federal tax refunds this year. It’s a media collusion narrative. The goal is to get people to buy into the idea that those Trump Tax cuts weren’t that great. But if the government took less of your money what happens? You got to keep more of it when you earned it.
If you kept more, then there would be less for them to give back when you ask.
Think about it this way: these reports about smaller refunds are every bit as disingenuous as headlines about Americans getting the biggest tax refunds of their lives would be in the wake of a massive tax increase. Higher tax burdens mean bigger refunds. Lower tax burdens mean smaller refunds, because the government got less of your money during the tax year.
Meanwhile, in New Hampshire
Compare it to your New Hampshire State Income tax refund. You don’t get anything back from the State of New Hampshire because there is no individual state payroll tax. So the total of your refund is zero. Every damn year.
How great is that? It’s a selling point. We tell people from other states about it.
Do we say, “Dude, my NH tax refund sucked this year!” No. We might say, “Hey, move to New Hampshire where you’ll never have to wait for a refund to get your own money back.” But that’s not as sexy.
We say no state income tax. We say it a lot.
If the Fed’s were to say, No Federal Income tax, you’d be smiling. But you wouldn’t get a refund. Because, like New Hampshire, you wouldn’t have to wait to get your money back because they didn’t take any in the first place.
But if you are a fan of refunds, you can change your withholding. Give more of your money to the IRS to hang on for most of the year. I’m quite sure all the Democrats and members of the media are lining up to do this very thing after posting comments or stories about how lame Trump’s refunds are this year. It creates ‘good paying jobs,’ after all.
If they bring it up, ask them.
Then, come April of 2020, they can ask for their money back. Just make sure to fill out the paperwork out correctly. The IRS can be a sticker about mistakes even though it’s your money.
