Tax Refunds
How does the new income tax policy work for individuals earning up to 12 lakh rupees per year?
Under the 2025 Union Budget, Finance Minister Nirmala Sitharaman announced that individuals earning up to 12 lakh rupees per annum will effectively pay zero income tax. While taxpayers technically calculate taxes using the new slabs (0% up to 4 lakhs, 5% from 4-8 lakhs, and 10% from 8-12 lakhs), the government introduced enhanced tax rebates that completely offset these taxes. For example, someone earning 12 lakhs would initially calculate 60,000 rupees in tax liability, but would receive an equivalent rebate when filing tax returns, resulting in zero net tax payment.
Watch clip answer (01:37m)
Think School
00:09 - 01:46
What is the 'Doge dividend checks' proposal discussed by Jesse Watters?
The 'Doge dividend checks' proposal suggests returning unused government funds directly to taxpayers instead of putting the money back into the Treasury. According to Jesse Watters, there's approximately $55 billion of taxpayer money that should be given back to citizens who earned it rather than keeping it in federal coffers. Watters argues that these dividend checks would serve as refunds to hardworking taxpayers, representing a more transparent and accountable approach to handling surplus government funds. He even suggests that Trump could personally sign these checks, emphasizing the direct return of money to the people who originally provided it through their taxes.
Watch clip answer (00:12m)
Fox News
03:44 - 03:57
What is the Doge dividends proposal?
The Doge dividends proposal is an initiative where money saved from canceled government programs would be distributed directly to taxpayers. This innovative approach would take the funds identified as waste by the Doge team, which has already saved $55 billion, and convert them into individual checks sent to American taxpayers. The concept represents a direct return of government savings to citizens, effectively creating a dividend from improved government efficiency. Led by Elon Musk, who estimates potential waste could reach a trillion dollars, this proposal aims to transform government waste reduction into tangible financial benefits for taxpayers rather than redirecting those savings to other government programs.
Watch clip answer (00:10m)
Fox News
01:32 - 01:42
What is a major concern regarding modernizing the tax system during tax filing season?
According to financial expert Elizabeth Scholzley, while there is broad bipartisan agreement that modernizing the tax system to make returns more efficient is good policy, there's a significant risk in implementing changes too quickly. The "move fast and break things" approach, especially during tax filing season, could adversely affect those who depend most on their tax returns. This concern is particularly relevant given that the top 1% of taxpayers are responsible for one-quarter of all missing tax revenue. Rushed modernization efforts might disrupt the processing system, potentially delaying refunds for vulnerable taxpayers who rely heavily on timely returns.
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ABC News
01:42 - 02:09
How could IRS layoffs impact tax returns during tax season?
The IRS layoffs occurring during tax season could potentially delay processing times for the 160 million tax returns expected from individuals and businesses. Tax experts warn that fewer people working on returns, system disruptions, or staff distraction from complying with external requests (like those from Dogecoin) could extend processing times. These delays would particularly impact lower-income Americans who rely on timely tax refunds. With reduced personnel handling the massive volume of returns during this busy period, the efficiency of processing could be compromised, affecting millions of taxpayers waiting for their refunds.
Watch clip answer (00:49m)ABC News
00:52 - 01:42
How might the modernization of the tax system affect low-income Americans?
Low-income Americans who rely on prompt tax refunds could face significant challenges due to potential disruptions in the tax system. According to financial experts, while there's bipartisan agreement that modernizing tax returns for greater efficiency is good policy, implementing changes too quickly—especially during tax filing season—risks harming those who depend on timely refunds the most. The situation is further complicated by the fact that while the top 1% of taxpayers are responsible for one quarter of all missing tax revenue, it's often ordinary Americans who suffer from system inefficiencies. This underscores the delicate balance required when reforming tax processes to ensure that vulnerable populations don't experience delays in receiving their much-needed tax returns.
Watch clip answer (00:35m)
ABC News
01:33 - 02:09