News media are reporting a record number of Americans requesting extensions on their taxes this year, and a whole lot of people who are getting smaller refunds or finding that they actually owe something.
Of course, it's all the fault of President Trump, those darn Republicans and their tax cut.
People are actually paying less, but it feels like they're paying more - mostly because, once the current tax rates went into effect, their withholding rates dropped. Folks actually got to keep more of their money all year, but today they are being surprised to learn that they are getting less back or owe money to Uncle Sam.
Here's a ridiculously simple example.
Before the tax cut, you owed $100 per year. Your withholding was $9 a month, so on April 15 you got a refund of $8.
After the tax cut, you only owe $90 per year, but your withholding dropped to $7 per month. Today, instead of a refund, you owe $6.
You never actually felt that slight increase in your take-home pay, so it's easy to believe the Democrats when they claim that nobody got a tax break but the very rich.
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