Tax cuts and a Merry Christmas. Christmas Bells are ringing for lots of Americans this year, as the economy is buzzing along, jobs are plentiful, gains in wages are finally moving upward, and a feeling that the worst of the great recession is finally over. Looking back at what transpired in 2008, the loss of nearly 600,000 jobs a month, a feeling of dread about the future, banking failures and an economy in free fall, the current outlook looks quite nice. Tax cuts and a Merry Christmas have been long waited for.
Not everyone will agree that the Tax Cuts and Jobs Act was a good bill. Many say that is is unbalanced, giving most of the benefits to the richest in our society, and too little to the middle class. But whether it was the policies of the Obama Administration or the Trump Administration that caused the current economic boom, there is no doubting the economy is doing great. Many people have seen increases in income, the unemployment rate is at an all time low, and the only negative seems to be that the deficit continues to go up. Whether the increased expansion will be enough to increase tax revenues down the road is hard to tell at this point.
Going into the New Year, the Trump Administration has decided to increase the funding for the IRS. It has been underfunded for over a decade. What that means for taxpayers behind of tax filing and paying taxes is that the IRS is gearing up for additional Collection Actions in 2019. Those actions include Tax Liens, Tax Wage and Bank Garnishments, additional Tax Audits and possible Criminal Convictions for serious offenders. The IRS has been lenient knowing that an awful lot of people have been impacted by the Great Recession, but now that times are good again, the pendulum is moving back again to the IRS becoming very aggressive in Collection Efforts.