Tax Day

Today is Tax Day in the US.  Many people are shocked that they aren't receiving a big refund.  Well, the Trump tax law changes gave people slightly more money in their weekly paychecks withholding less.  So they get a smaller refund or owe more today.

Most of the tax law changes benefited the wealthiest among us.  By peculiar circumstances I actually owed slightly less.  But mostly, for the first time, my Federal and State taxes refund/owed came out close to nothing.  A few hundred to the State, a few hundred refund Federal.  I'm pleased with that.  It means I don't have to adjust my withholding.

But a whole lot of people are screaming mad about it because they depend on the Big Refund Check.  And I get it.  A lot of people who have trouble saving money use the Tax Refund as a sort of forced saving account.  I feel for them.

Trump and the Republicans thought that people would notice the increased paycheck net.  They were SO WRONG!  They don't understand that people who live paycheck to paycheck don't notice a $30 increase much because they spend it as fast as they earn it.  And mostly on legitimate things like food, shelter, credit card debt, and medicine.

I agree completely that the way to savings is to pay of existing credit card debt.  But when paying an extra $30 per month on a $20,000 credit card debt doesn't make much of a dent in the total bill, it is hard to see how a weekly increase helps.   I am personally fortunate to be debt-free; others aren't.

What most debt-ridden people WANT is a manageable (if forever) debt and a tax refund to splurge with.  That's not the way to managing debt, but it IS what most people do...

There HAS to be a better system for those folks...