10/16/2024
Food for thought: We have many clients that believe taxes have increased since (2018), (Republican was elected), (Trump was elected). I compiled a comparison from 2017-2021 for a single person & married couple with two children. Taxes decreased from 2017-2018; In the single scenario (image 1) 2.87%; married scenario (image 2) 2.91%. In 2020 the IRS made changes to the W-4 form (federal withholding). The updated form should have provided taxpayers the means to more accurately withhold federal income tax. The issue was taxpayers filled out the form incorrectly, which decreased the amount of tax withheld. In return, taxpayers believed taxes increased, which, in most middle-class income ranges the tax decreased. The most important thing to look at is the tax & effective tax rate (based on the ratio of tax to income). The proof is in the pudding. I am not advocating only educating.