Tax season is upon us and with it comes a mix of emotions for many Americans. On one hand, there is the excitement of receiving a tax refund, a much-awaited financial boost for many households. On the other hand, there is the lingering feeling of frustration and resentment towards taxes, with recent polls showing that most Americans still believe their taxes are too high.
But let’s start with the good news – tax refunds are up this season. According to the Internal Revenue Service (IRS), the average tax refund for the 2020 filing season is $2,827, an increase of 1.3% from the previous year. This is a welcome relief for many Americans who have been struggling to make ends meet in the midst of a global pandemic.
So why are tax refunds up this season? The key factor is the Tax Cuts and Jobs Act, which was signed into law in 2017. This legislation brought about significant changes to the tax code, including lower tax rates and a larger standard deduction. As a result, many Americans are seeing a larger refund this year.
But despite the increase in tax refunds, recent polls show that the majority of Americans still feel that their taxes are too high. This sentiment is not surprising, as taxes have always been a contentious issue. However, it is important to take a closer look at the reasons behind this belief and consider the bigger picture.
One of the main reasons for this perception is the complexity of the tax system. Filing taxes can be a daunting task for many individuals, especially those who are not well-versed in financial matters. This can lead to confusion and frustration, which in turn can contribute to the belief that taxes are too high. However, efforts are being made to simplify the tax system and make it more transparent. The IRS has introduced a new Form 1040-SR, specifically designed for taxpayers over the age of 65, which aims to simplify the filing process.
Another factor that contributes to the belief that taxes are too high is the misconception that the government is misusing tax revenue. While it is true that the government has a responsibility to ensure that taxpayers’ money is used wisely, it is also important to recognize the many essential services and programs that are funded by taxes. From infrastructure and education to healthcare and social security, taxes play a crucial role in maintaining the well-being of our society.
Furthermore, the idea that taxes are solely a burden is not entirely accurate. Taxes also provide individuals with opportunities to contribute to social causes and make a positive impact on their communities. For example, the Earned Income Tax Credit (EITC) is a tax credit for low-income individuals that not only reduces their tax burden but also helps lift them out of poverty. Additionally, many states offer tax credits for charitable donations and energy-efficient purchases, providing taxpayers with the chance to support causes they care about while also receiving tax benefits.
It is also worth noting that taxes are essential for a functioning economy. They fund government spending, which in turn creates jobs and stimulates economic growth. Without taxes, the government would not have the necessary resources to invest in infrastructure, education, and research, all of which contribute to a thriving economy.
In conclusion, while it is understandable that many Americans still believe their taxes are too high, it is important to consider the bigger picture. Tax refunds may be up this season, but it is crucial to recognize the numerous benefits that taxes provide to our society. From essential services to opportunities for individuals to contribute to their communities, taxes play a vital role in maintaining the well-being of our country. So this tax season, let’s not just focus on the size of our refund, but also on the positive impact that our taxes have on our society.
