While some Americans are frustrated by the amount of their refunds this tax season, a number of Democratic lawmakers are taking this opportunity to criticize the Trump administration's tax law.
A group of about 40 Democratic senators sent Friday a letter to the administration asking the Internal Revenue Service (IRS) to remove the penalties imposed on taxpayers whose payments were subtracted this year because Tax Reform Act and Adjusted Deductions Tables.
"It looks like Trump's treasury department has passed 2018, an election year, by cashing taxpayers' paycheques, and it would have been obvious that the bill would eventually expire," said Ron. Wyden, D-Ore, Member of the Senate Finance Committee. said in a statement.
The leader of the Senate minority, Chuck Schumer, D-N.Y., Criticized the administration for the refund amounts obtained.
"Many Americans depend on their tax refunds to pay their bills and make ends meet – but in this tax season, working families will see lower returns than expected and unexpected tax bills because Trump's administration has used smoke and mirrors to try to overstate their tax law on middle-class families for political reasons, "said Schumer.
As previously reported by FOX Business, it has been projected that about 21% of workers risked seeing their taxes subtracted from the current tax structure, up $ 3 million from estimates based on the old tax code. . Taxpayers were asked to check and update their deductions during the year, but by October, most people had not done so yet.
The IRS announced last month that it would waive the fine imposed on those whose total withholding taxes and estimated taxes equals at least 85% of their taxes.
Meanwhile, taxpayers have expressed frustrations on social media with hashtags such as #TaxScam and #NeverOwedBefore while smaller refund checks come into play. Some people are even stuck with a bill for the first time.
The average repayment in the first 12 days of the deposit season was $ 1,949, the IRS announced Thursday. This compares to $ 2,135 in the same period last year, a decrease of 8.7%.
The administration, however, is fighting back to assure Americans that they have benefited financially from the new tax law.
Overall, Treasury officials said they expect fewer Americans to get refunds this year compared to last year. On Thursday, a spokesman for the Treasury Department said that smaller repayments constituted a "positive news for taxpayers" because it meant that they were paying the appropriate amount in taxes throughout the year. .
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Individual taxes will be reduced for about 80% of tax filers thanks to the law on the reduction and use of taxes. Meanwhile, 15% of people will see no change, according to the administration. That leaves about 5% who owes more.
Regardless of tax reduction, however, many people rely on their repayment to pay for certain expenses, which could be problematic for those who make larger checks. This year, the average person expected should receive about $ 3,000, according to a GOBankingRates survey. More than one in four said that she was considering using this money to pay off her debts.