Archive for February 27th, 2019

It’s official: my tax refund is bigger this year…

February 27, 2019

But, to my dismay, my taxes increased
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These days, all the publicity is about people who are getting smaller tax refunds this year … clear evidence, they say, that Trump lied about cutting middle class taxes.

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Not really.

People seem to easily confuse “refunds” with “taxes paid”.

Of course, the relevant measure is “taxes paid” … and, most middle-classers are paying less in taxes.

But, behavioral economics and psychology kick in … and, people wrongly focus on their refunds.

If I did that, I’d be feeling great today

Last year, I had to write a check to the government.  Ouch.  This year, I’m getting a statistically insignificant refund.

Good news, right?

Nope … because my taxes went up.

My income stayed about the same … so the increase was due to the tax law changes.

When I drilled down on the causes & effects, I got a few surprises….

(more…)