Americans everywhere are feeling the financial pinch as the economy desperately tries to recover from the pandemic. According to reports from the IRS, average tax refunds have dropped a significant amount and this may be a sign of a deteriorating economy.
With inflation on the rise and job security still uncertain, it seems that the Biden Administration has failed to deliver the much needed relief for citizens. This shocking news further underscores how fragile the American economy is right now and shows that many Americans still lack basic necessities.
Epoch Times reports, both tax experts and the IRS have predicted that Americans’ tax refunds this year will be smaller than last year, according to the latest IRS update on tax filing data.
According to the latest IRS data, the average refund amount was $1,997 as of Feb. 10. A year ago, the average refund amount was $2,323, which is 14 percent lower.
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Due to tax law changes, including the elimination of the Advance Child Tax Credit and no Recovery Rebate Credit this year to claim pandemic stimulus payments, many taxpayers will see their refunds reduced.
According to a prior IRS update, tax refunds were nearly 11 percent lower on Feb. 3, but that figure had climbed by around three percentage points since then.
With the lower tax refund amount this year per person, it is also of note that tens of millions of more Americans are working and paying taxes, yet the government is giving back less money.
NPR reports, our tax returns are due, and many of us are facing smaller refunds, reduced tax credits and deductions – just as inflation and higher debt loads are eating into our budgets.
According to the IRS’s updated filing statistics, this year has seen a 48 percent increase in the total number of refunds issued compared to last year.
This sad news is a stark reminder of the dismal state in which America currently finds itself. Even with Biden in office, it seems that the economy has failed to recover from the pandemic, with inflation continuing to rise and job security still uncertain, and out of control spending. The fact remains that the federal government is seeing tens of millions of more people paying into the system, but due to the mismanagement by the Biden administration, there is less money left to go back to the people. The lack of progress has taken its toll on citizens – average tax refunds have dropped significantly compared to last year. This speaks volumes as to how far America has fallen and how much Joe Biden has failed to deliver in terms of economic relief. It doesn’t take an economist to see that America needs help desperately, and Donald Trump should be welcomed back into office if we are ever going to escape this economic hellscape.
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