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    What Has Changed with the GOP’s Tax Cuts and Jobs Act

    After coming out of tax season, we are entering the time where refunds are in the mail.

    Despite all the excitement surrounding the tax cuts, many of the refund checks we see might only be marginally different from last year. For some, this means a smaller refund. For others, this means that they owe more to the IRS than they have in years past.

    This has left many with questions. One of President Donald Trump’s big campaign promises was to create fairer taxation for the middle class. But there is more to taxes than we see on our refunds now in the mail. The GOP’s Tax Cuts and Jobs Act has been at work longer – and harder — than the many in the public realize.

    The perceived refund shrink is explainable. One reason is quite simple: lower taxes on your gross income each pay period. You might have noticed in February of last year that you had a larger paycheck each pay period than you expected in the past. This is because of tax cuts resulting in less money withheld from your pay.

    Another bright side of new tax legislation is a larger Child Tax Credit for children under 17 years old. Parents can now claim a CTC of $2,000 per qualifying child; a far cry from the $1,000 under old tax laws. This part of the GOP bill is set to be phased out by the year 2025 (Tax Act).

    Unfortunately, as with any tax-related legislation, things are complicated. How beneficial the Tax Cuts and Jobs Act is to you depends on your income bracket. If you land between $9,525-$200,000 each year, you were taxed an average of 2% less. The same applies for an income of over $500,000 per year. Those that lie in the $200,000-$500,000 range saw no change to their paycheck (Tax Foundation).

    Also, if you didn’t adjust your W-4s for the amount you wanted withheld in accordance to new tax codes, you may have been impacted negatively (Time Magazine). This explains why some people might end up with an unchanged income compounded by a smaller refund.

    The GOP’s tax bill eliminated personal exemptions as well, which amounted to nearly $4,050 per filer in 2017. Personal exemptions were replaced instead by a standard deduction double what it has been in previous years. For example, a person of single filing status went from $5,650 worth of standard deduction to $12,000.

    All that said, there were also losers in the new structure. With the cap on state property taxes and elimination of the state and local tax (SALT) deductions, many who live in the New York, New Jersey, California and other highly taxed states will pay more.

    Year to year, tax codes are a daunting puzzle. Did you feel cheated or triumphant after winding through the maze of 2019’s tax season?

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    A Summary of a Summary: The Mueller Report

    A few weeks ago, Attorney General William Barr outlined what he called “principal conclusions” of Special Counsel, Robert Mueller (Washington Post). For some, the summary was a cover-up coupled with attacks on Barr’s integrity. Others greeted Barr’s summary with claims of victory citing what they concluded to be findings of no collusion or obstruction of justice. As is so often the case in today’s Washington, the reaction of both sides was wrong.

    Nonetheless, here are three basic takeaways from what Barr did say:

    1. The Russians did interfere with the 2016 election.
    2. No one can confirm or deny the fact that the Trump Campaign “conspired or coordinated with the Russian government in its election interference activities.” (Washington Post)
    3. According to Barr, there is still no conclusive evidence to support the claim that President Trump obstructed justice.

    The immediate reaction was condemnation by the left and victory marches by the right. All this before release of the full report, redacted or otherwise. Such uniformed and virulent responses, in light of the serious charges that have been filling the airwaves for more than two years, is negligent and irresponsible. Unfortunately, that is what we have come to expect from today’s politicians and biased media – on both sides of the aisle.

    After two years of speculation, leaks, false allegations, and the unjustified character assassination of some, we all need to wait for the full report before we make any conclusions. It is time for the political partisans and media pundits to shut up until we all see the full report.

    Barr also has reason to redact parts of the report.  The law requires it. Regardless, it serves no purpose to object to redactions until we see them and determine if they are appropriate legally appropriate.

    So far, no one has any evidence that Barr is anything but truthful. He is highly respected by anyone who is speculating on his integrity at this point in time is either naïve or ignorant. That does not mean he might not make mistakes – just as so many others have done, particularly those on both sides of the issues who love to attack one another. With so much at stake and in light of our growing distrust in all of Washington, now is not to time to jump to idle conclusions.

    Sadly, all of these left/right wing theatrics make me wonder if we can ever believe what our government is telling us and whether we will ever know the whole truth.

    Perhaps time will tell.