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Middle Income Tax Payers Don’t Want A Tax Cut

The Republicans are constantly pushing tax cut initiatives however most middle income tax payers are not concerned about tax cuts. Most of them don’t have a problem with the federal taxes they’re paying and have little desire to change anything. My basis for this is quite simple. The average middle-class taxpayer don’t owe any additional federal taxes at the end of the year. Most people are due a tax refund because they over paid. The average tax refund check for a middle-class tax payer is almost $3,000. So a tax cut for the middle-class simply means getting a smaller tax refund check. I don’t think a lot of people are sitting around wishing for that to happen.

Mitt & Friends don’t seem to realize that most middle-class tax payers get a tax refund at the end of the year. Mitt assumes that everyone is sitting around like him and his buddies obsessing over the taxes they owe and trying to dig up every loophole they can find. But the situation is totally different for the middle-class and Romney just doesn’t get it.

If middle income folks wanted the equivalent of a tax cut they could simply go to their payroll department and increase the number of exemptions on their W-4. Most people don’t claim enough exemptions on their W-4, so they overpay their federal income taxes throughout the year. But they know exactly what they’re doing because they would rather get a big tax refund check instead of getting an extra $100 or so per pay period.

Most people don’t have the discipline to save that $100 so they would rather let the IRS hold it and then get it back at the end of the year when they file their taxes. This common practice drove Steve Forbes nuts back when he ran for President in 1996 and 2000. Forbes kept trying to advise people to increase the number of exemptions on their W-4 and use the extra money to invest in a mutual fund instead of giving the IRS an interest free loan. But he couldn’t get anyone to listen and no one is listening now. People look forward to getting their tax refund because it’s the only way they can save any money. They certainly don’t want Romney screwing around with it by changing the system.

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