{"id":1490621,"date":"2022-05-24T18:59:51","date_gmt":"2022-05-24T22:59:51","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1490621"},"modified":"2022-05-24T18:59:57","modified_gmt":"2022-05-24T22:59:57","slug":"american-households-owed-hundreds-of-billions-more-than-usual-this-tax-season-report-says","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/american-households-owed-hundreds-of-billions-more-than-usual-this-tax-season-report-says\/","title":{"rendered":"American Households \u2018Owed Hundreds Of Billions More Than Usual\u2019 This Tax Season, Report Says"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">28<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Famerican-households-owed-hundreds-of-billions-more-than-usual-this-tax-season-report-says%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1490621&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>American households paid \u201chundreds of billions more than usual\u201d in their 2021 tax returns, according to a Monday analysis from the University of Pennsylvania\u2019s Wharton School.<\/p>\n<p>The analysis from <a href=\"https:\/\/budgetmodel.wharton.upenn.edu\/issues\/2022\/5\/23\/why-taxpayers-owed-500-billion-taxes\">Penn Wharton Budget Model<\/a> (PWBM), a nonpartisan public policy research initiative, noted that payments of nonwithheld individual income taxes in April 2022 surpassed $522 billion \u2014 significantly higher than the $243 billion collected in May 2021, the month in which tax filings were due last year.<\/p>\n<p>Because \u201cthe surge in taxes due at filing came entirely from taxpayers who paid by electronic funds transfer,\u201d PWBM concluded that the vast majority of the increased tax payments came from households which, unlike businesses, tend to file their records electronically once per year at tax season.<\/p>\n<p>The payment surge is likely attributable to higher household wealth. \u201cHousehold equity wealth rose 40 percent last year \u2014 nearly twice as fast as any other year since 1990 \u2014 as the economy recovered and equity prices rose sharply,\u201d PWBM explained.<\/p>\n<p>Indeed, American Enterprise Institute senior fellow Kyle Pomerleau told The Daily Wire that \u201cthe economy in 2021 recovered quite rapidly, which meant that incomes also increased.\u201d Because capital income tends to correspond with the business cycle, \u201cit is not very surprising that as the economy grew, that source of income grew quickly.\u201d<\/p>\n<p>Inflation \u201ccan also increase the nominal returns to capital assets and boost the taxes paid on their returns,\u201d Pomerleau added.<\/p>\n<p>Although the data utilized by PWBM were adjusted for inflation according to the Personal Consumption Expenditures Price Index, the Consumer Price Index \u2014 which increased from 1.4% in January 2021 to 7.0% by December 2021 \u2014 has trended somewhat higher than the former metric over the past year.<\/p>\n<p>Pomerleau also pointed out that Congress discussed potential tax increases on capital income last year \u2014 which \u201cmay have encouraged taxpayers to realize capital gains in 2021 in order to avoid potential tax increases put into place in 2022.\u201d For example, Treasury Secretary Janet Yellen argued in October that a <a href=\"https:\/\/www.dailywire.com\/news\/democrats-appear-to-back-down-from-unrealized-capital-gains-tax\">tax on unrealized capital gains<\/a> \u2014 in other words, investments that have not yet been sold \u2014 would help the federal government reap revenue from wealthy taxpayers.<\/p>\n<p>In any case, the stock market has seen a large selloff since the end of 2021 due to various economic calamities \u2014 including <a href=\"https:\/\/www.dailywire.com\/news\/consumers-disliked-2021s-economy-more-than-2020s\">persistent inflation<\/a>, <a href=\"https:\/\/www.dailywire.com\/news\/biden-slammed-for-remarks-on-enormously-high-gas-prices-theyre-saying-the-quiet-part-out-loud-now\">high gas prices<\/a>, <a href=\"https:\/\/www.dailywire.com\/news\/inflation-worries-remain-near-record-highs-boding-poorly-for-economy\">low consumer confidence<\/a>, and the <a href=\"https:\/\/www.dailywire.com\/news\/economist-warns-that-world-is-in-early-stages-of-very-significant-recession\">Russian invasion of Ukraine<\/a>. The Dow Jones has fallen from over $36,000 at the end of 2021 to under $32,000 as of Tuesday afternoon.<\/p>\n<p>Likewise, the Nasdaq \u2014 a technology-heavy stock index \u2014 has endured <a href=\"https:\/\/www.dailywire.com\/news\/tech-stocks-see-worst-losing-streak-since-dot-com-bubble\">seven weeks of losses<\/a>, including 3.8% declines during the week of May 16. The drops constitute the worst declines since the dot-com selloff in 2001. Companies such as Tesla, Cisco, Dell, and Twitter experienced large drops last week \u2014 14%, 13%, 11%, and 6%, respectively.<\/p>\n<p>At a press conference earlier this week, President Joe Biden denied that the United States is <a href=\"https:\/\/www.dailywire.com\/news\/biden-sounds-off-on-whether-he-thinks-another-recession-is-inevitable\">bound for another recession<\/a>. In addition to emphasizing lower unemployment rates, he argued that his administration is doing what they can<\/p>\n","protected":false},"excerpt":{"rendered":"<p>American households paid \u201chundreds of billions more than usual\u201d in their 2021 tax returns, according to a Monday analysis from the University of Pennsylvania\u2019s Wharton School. The analysis from Penn Wharton Budget Model (PWBM), a nonpartisan public policy research initiative, noted that payments of nonwithheld individual income taxes in April 2022 surpassed $522 billion \u2014 &#8230;<\/p>\n","protected":false},"author":99,"featured_media":1490633,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1490621","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1490621","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/99"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1490621"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1490621\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1490633"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1490621"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1490621"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1490621"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}