It looks like the average tax fund is lower this year

March 22 – Early filers for taxes this year have seen a reduction in their refunds. 

Statistics have shown refunds have declined almost 29% this year. 

About 15 million people have filed early this year. 

Attorney Clint Barkdoll said, “This is going to be a surprise to a lot of people who rely on those tax refunds as part of their annual budgets. There are a number of reasons behind this. Wages are by and large up across the board. That, of course, equates to higher taxes, but a lot of those credit programs that people had enjoyed from COVID that continued for many years are also gone. So that’s eating into your tax bill. So if you rely on that, you need to be prepared. You’re likely not getting as big of a refund this year. Remember this entire tax structure that we’re under right now, what’s known as the Trump tax cuts, when that was passed in 2017, it was always scheduled to sunset in 2025. That was a criticism of that package from the beginning, was this essentially just a sugar pill that would not be a permanent fixture in our tax system? It’s very uncertain at this point what Congress does. If Congress does nothing and is as dysfunctional as our government seems to be right now, that’s a real possibility.”

What would happen when this entire tax code system reverts to the pre-2017 tax laws? 

Barkdoll noted, “People could be in for an even bigger tax shock if that scenario comes to fruition next year.”

Michele Jansen of NewsTalk 103.7FM pointed out, “The way one thing built on another and built on another one and then with COVID and the giveaways that were done during COVID and full disclosure I benefited like many people did because of some of those ways that they gave you more money for your kids, more money for things. But now, what do we do if we don’t pull it back? We couldn’t afford it even for those few years. All those things piled on top of each other, and now they’re doing everything that they can to at least I know most Democrat-run states and the country, of course, they’re trying as much as they can to keep giving us those same credits in every way possible. How can we afford this? This is not money that’s produced from anything but being printed and borrowed and that the taxpayer has to foot.”

Barkdoll agreed, “We can’t afford it. This is in the backdrop of an ever growing deficit and national debt. There’s just no way that we can afford this. Going back to 2017 and of course, that was pre-COVID, there was a lot of criticism about this tax package, saying was was this too much of a giveaway? Was it going to contribute to problems with the debt and the deficit? Well, on one hand, the economy boomed. But on the other hand, now, as we’re getting near the end of those tax cuts, you can see what it has done to the deficit and the debt. Of course, the government just keeps spending like crazy. So I think we have a real problem on our hands. What Congress does with this next year, who knows? I think the most likely scenario is they’re unable to do anything, because the votes aren’t going to be there to come up with some kind of a compromise package that could get a majority of votes through the House and the Senate.”

Jansen added, “It’s an election year and to actually have people pay more taxes is death to getting reelected, especially in this ridiculous, never-ending permanent career as elected politician system we live in. So we see nothing happening there. If we had kept having real production, which I will say, my opinion, did happen under the Trump administration, we could have weathered that better, but now that we’ve taken away incentives to work, now that we have millions of people pouring across our borders who are not going to and especially not right initially, able to be productive in this country, we’re really looking at some ridiculously difficult times where we don’t have the actual economic production to weather it.”

Barkdoll said, “Just coincidentally this morning, the House is going to vote on another one of these, what they call a mini-bus or you can call it a continuing resolution. Over $1 trillion in spending. The votes are going to be there to pass it. It likely will sail through the Senate. The government would otherwise be scheduled to shut down today, but you’re seeing a lot of criticism about this. The Freedom Caucus, they’re holding a press conference this morning and they are going after Speaker Johnson. They’re saying that the Republicans have totally sold out when it comes to the budget and spending. There’s some talk that they may make a motion to vacate, to get him out a speaker again. There were a couple of Republicans on the record last night that were just very critical, I thought in an appropriate way, of the way the House seems to be unable to manage this majority they have. There’s been no spending cuts, all these reforms about we’re going to let the bills sit for so many days before we vote on them. They’ve suspended all of that. They never got anything on the floor with term limits. We could go on and on. But it all fits very much into this discussion we’re having about taxes and the overall budget.”