their own deadlines. California, for example, has
bumped its date for filing and payment of state
taxes to June 15.
HOW WILL THIS HELP THE ECONOMY?
It’s unclear.
Treasury Secretary Steven Mnuchin estimates
that taxpayers will be able to keep $300 billion
in the economy for now. And some tax and
economic experts say any extra cash in the
hands of Americans is helpful because many will
be struggling to get by.
However, some say the tax delay will not provide
widespread financial relief.
Howard Gleckman, a senior fellow at the
nonpartisan Tax Policy Center, says he thinks it
will have a limited impact. That is in part because
about three-quarters of Americans get refunds in
any year and won’t benefit from a delayed tax bill.
The IRS expected about 150 million individual
tax returns, as of the most recent count, about
68 million taxpayers have already filed.
Those who file early tend to be low- and
middle-income individuals who are getting a
refund. Higher-income individuals, or those
with complex taxes who owe money to the
government, tend to file later, Gleckman said.
This move will provide some relief for them, but
Gleckman warns that higher income individuals
have extra cash, and they tend to save it not
spend it. That leaves lower income individuals,
who need it most and are more likely to go out
and spend it, without relief from this move.