28 thoughts on “Don’t expect a refund from tax cuts: Chris Hogan

  1. Anyone who thinks they deserve a tax rebate is wrong they take too much money out of your check every week then they make money with your money and take there time sending you back a refund which is actually yours

  2. How Republicans made millions on the tax cuts they pushed through Congress: When the price of Apple stock hit a then-record high in October 2018, among the shareholders counting their gains were 43 Republicans in Congress, who collectively owned as much as $1.5 million worth of the tech giant’s shares. Apple’s stock jumped 37 percent in its runup to that record. Several variables were behind the climb, including higher-than-expected earnings. But congressional Republicans themselves had a hand in the spike, stock analysts say. Legislation they championed — the 2017 Tax Cuts and Jobs Act — doled out nearly $150 billion in corporate tax savings last year alone. One effect: a big boost in stock prices. Cutting tax rates for companies like Apple and hundreds of other stocks they own was one of many ways Republican lawmakers enriched themselves after they passed the tax law, according to a Center for Public Integrity analysis of the 186-page law and members’ financial disclosure forms. Democrats also stood to gain from the tax bill, though not one voted for it; all but 12 Republicans voted for the tax bill.

    As part of the bill, Republicans approved tax breaks in 2017 for seven classes of assets many of the wealthier members of Congress held at the time, including partnerships, small corporations, real estate, and several esoteric investment vehicles. While they sold the bill as a package of business and middle-class tax cuts that would not help the wealthy, the cuts likely saved members of Congress hundreds of thousands of dollars in taxes collectively, while the corporate tax cut hiked the value of their holdings. “Under current law, members of Congress can trade stocks and then use their powerful positions to increase the value of those stocks and pad their own pockets,” Warren wrote in a September Medium post. Two years after the passage of the Trump tax act, its effects — some obvious, some hidden — are coming into focus. One is its cost: Contrary to Republican claims, the law is not paying for itself and is likely to burden the nation with an additional $1.9 trillion in debt over 11 years beginning in 2018, according to the Congressional Budget Office.

    And while the law cut tax rates for people of all income brackets, some of its tax benefits overtly favored the wealthy, such as the 2.6 percentage point tax rate cut in the highest bracket and the doubling of the estate tax exemption to $11.2 million. Other provisions were subtler yet favored the wealthy even more: tax breaks for their investments, for instance, or changes that boosted the value of their stocks. Among the rich beneficiaries are members of Congress, more than half of whom were found to be millionaires in 2014.

    The tax law’s centerpiece is its record cut in the corporate tax rate, from 35 percent to 21 percent. At the time of its passage, most of the bill’s Republican supporters said the cut would result in higher wages, factory expansions, and more jobs. Instead, it was mainly exploited by corporations, which bought back stock and raised dividends. In 2018, stock buybacks exceeded $1 trillion for the first time ever, according to TrimTabs, an investment research firm. Net corporate dividends reached a new high in 2018 of more than $1.3 trillion, nearly 6 percent more than the previous year. The result, analysts say: The buybacks boosted stock prices, and bigger dividends put even more money in the pockets of stockholders. Promises that the tax act would boost investment have not panned out. Corporate investment is now at lower levels than before the act passed, according to the Commerce Department.

    The boost in stock prices, however, was predictable. As the bill was reaching its final stages in 2017, Bryan Rich, the CEO of Logic Fund Management, a wealth advisory company, wrote that the proposed corporate rate cut “will go right to the bottom line of companies — popping EPS [earnings per share] and driving stocks even higher.” Those benefits mainly went to the rich, as the wealthiest 10 percent of Americans own 84 percent of all stocks. The 10 richest Republicans in Congress in 2017 who voted for the tax bill held more than $731 million in assets, almost two-thirds of which were in stocks, bonds, mutual funds, and other instruments, according to Roll Call’s semiannual assessment of Congress’s wealth.

    Orrin Hatch (R-UT) was chair of the Senate Finance Committee in 2017, when he and his wife owned mutual funds and a limited liability corporation valued between $562,000 and $1.430 million, paying them between $12,700 and $38,500 in dividends and capital gains, according to Hatch’s financial disclosure forms. They also owned a blind trust worth between $1 million and $5 million. (Congressional financial disclosure forms do not require members to report the precise value of assets and income but rather in 11 different ranges, each with a minimum and a maximum value.) For decades, Hatch, who retired in 2018, had been one of the loudest deficit hawks in Congress. Just 10 months before he would shepherd the tax bill through his committee, Hatch said, “The national debt crisis poses a significant and growing threat to the economic and national security of this country.” His concern over national security lasted two months. In April, Hatch signaled he was open to a Republican tax bill that would likely add to the national debt. When Republicans passed the tax bill in December 2017, he beamed. “This is a historic night,” he said at a press conference.

    A big bump from overseas onshoring: Republican lawmakers also boosted the value of their stock holdings when they encouraged American corporations to repatriate money they were holding overseas. The tax law decreed that future foreign profits would not be taxed at high rates, and that previously earned profits stashed abroad — an estimated $2.7 trillion — would be taxed one time at no more than 15.5 percent. In 2017, Apple was sitting on $250 billion in overseas profits. In January 2018, the month after President Donald Trump signed the tax bill into law, the tech behemoth and third-largest American company said it would pay the new, lower tax and start bringing the cash home. Just four months later, Apple said it would buy back $100 billion of its stock and hike its dividend by 16 percent. Apple shares increased almost 9 percent by the week’s end. In April 2019, Apple announced $75 billion more in buybacks, a move analysts said would likely drive its stock price higher. A day after the announcement, shares increased in value nearly 5 percent. The stock continued to hit record highs late last year. That increase and higher dividends augmented the holdings of 43 Republicans who voted for the tax bill, including seven senators and their spouses who owned Apple stock in 2018: John Hoeven of North Dakota; David Perdue of Georgia; Arizona’s Jeff Flake, now retired; Jim Inhofe of Oklahoma; and the spouses of Pat Roberts of Kansas, Maine’s Susan Collins, and Shelley Capito of West Virginia. A spokesperson for Hoeven said that he “follows Senate regulations and reporting requirements.” Sen. Collins’s husband’s portfolio decisions are all made by a financial adviser, a Collins spokesperson said, and he has not bought or sold Apple stock since 2015.
    Perdue is one of the wealthiest senators, with a net worth of $15.8 million, $14 million of which is in stocks, according to Roll Call. In 2018, with his wife, Perdue owned $100,000 to $250,000 in Apple stock, he reported. The couple sold some of it and received annual dividends and capital gains that year between $15,000 and $50,000.

  3. I enjoy my tax return every year, this guy says it's not a bonus but when you have children you get bonuses for child credits and earned income. Just my opinion

  4. We all give interest free loans to the government and they still bend us over and pop one in our behinds.. good job Uncle Sam.

  5. The child tax credit is not something Americans pay into, also the earned income credit allows low-mid income people to receive a refund. The segment of people discussed in this video is in an entirely different income bracket from the segment I live in. I cannot imagine generating enough income to purposely donate funds for tax purposes.

  6. My refund last year was 80% less then the last 10 years. Nothing changed as far as my pay. Is it because I'm in California ?

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