Filing Taxes is Political: let's own it

Taxes Are Political And That's Okay  

Last July 4th, the One Big Beautiful Bill (AKA the Billionaire Bill) was signed into law, bringing sweeping changes: permanent extensions of the 2017 Trump tax cuts, new deductions for tips and overtime, and significant reductions to Medicaid and SNAP. Some of those tax changes are showing up for the first time as we file this spring, but many of the cuts to social programs were deliberately structured not to kick in until after the midterm elections. The tax benefits come first; the social costs come later. That's not an accident.

When tax revenues shrink, important things go unfunded. Roughly half of every federal tax dollar has gone to Social Security, Medicare, Medicaid, and related health programs, until now. The numbers are real: over $1 trillion cut from health care, $186 billion from SNAP food assistance, and housing voucher limits as homelessness intensifies. Lower tax revenues are not abstract. They are shrinking specific, urgently needed programs. The market alone will not solve hunger and homelessness. That's why we also need funding from taxes.


Sitting With the Dissonance

Many of us hold two things at once: a desire for everyone to have access to housing, healthcare, education, etc., as well as a personal financial life that benefits from systems we know are flawed. The instinct is to disengage, don't think about it, don't look at the number. But disengagement isn't neutrality. It's just a different kind of choice.

The more courageous move is to look at what you have, understand how you got it, and decide intentionally what to do next. A concrete first step: ask your CPA (if you have one) exactly how much you're saving under the new tax law. Not as an exercise in guilt, but in clarity. Then decide what to do with that information you could give more, advocate louder, or simply stay informed and refuse to look away. All of it counts.
 

Values-Based Tax Planning 

One empowering move is to align your tax planning with your values. That might look like directing charitable giving toward 501(c)3s like Planned Parenthood or the ACLU, or to 501(c)4 advocacy organizations, even when there's no tax benefit. It might mean recognizing that success is never purely meritocratic, that luck and systemic advantage are always part of the equation, and giving accordingly.

I'd love to hear from you, how did this resonate? Are you thinking about your taxes differently this season? Hit reply and let me know. 


Resource Center

  • File Your Taxes for Free! Check out Free Tax USA to e-file directly to the IRS at no cost. Federal tax returns are completely free. They make their money through state returns and optional add-on services.

  • Past Tax Newsletters This isn't my first time writing about taxes. You can check out past issues for more guidance and perspective:

Sources

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Reading the Economy Before It Hits Your Paycheck