The average tax refund is down about $170 compared to last year. Let’s call the President’s tax cut what it is: a middle-class tax hike to line the pockets of already wealthy corporations and the 1%.
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This is simply the latest episode in a long-running campaign to demagogue tax cuts that let the vast majority of Americans keep more of their hard-earned money.
Some of the biggest cuts are actually being enjoyed by the lowest-income Americans. A typical family of four got a $2,917 tax cut this year.
So what’s the complaint about?
In an early sample of tax returns, the IRS has reported that average refunds are down $170 from last year and that they hadn’t changed much from 2017, the year before.
But this is not relevant, for two reasons.
First, the sample of tax returns cited by the IRS is very small, and some analysts expect refunds will actually go up this year.
But second, and more importantly, tax refunds have nothing to do with the size of anyone’s tax cut. A refund is what you get back if you’ve paid too much in taxes throughout the year. Your tax cut is the drop in total taxes you owed to Uncle Sam last year. The two are not connected.
Employers across the country already gave us our tax cuts by withholding less money from our paychecks every pay period. Americans saw a bump to their paychecks in February 2018.
Of course, withholding is never perfectly accurate, so your refund or tax payment at the end of the year is simply a last-minute adjustment. But that refund does not cancel out the overall bump in take-home pay due to the tax cut.
Do you remember when House Speaker Nancy Pelosi called the tax cuts “monumental, brazen theft,” or when former Treasury Secretary Larry Summers predicted the tax cuts would kill 10,000 people every year? This most recent round of hysteria is just more of the same.
Last year, The Heritage Foundation calculated what Americans across the country can expect from the tax cuts. The average household can expect about $26,000 more in take-home pay over the next 10 years thanks to the tax reform.
Americans benefit twice from the tax cuts—first, by paying less in taxes, and a second time from higher wages generated by a faster-growing economy.
At the end of 2018, workers saw some of the largest wage gains in over 10 years, and unemployment rates remain historically low. Over the next 10 years, because of a larger economy, the...
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"The average tax refund is down about $170 compared to last year. Let’s call the President’s tax cut what it is: a middle-class tax hike to line the pockets of already wealthy corporations and the 1%."
ReplyDeleteThis is a f**king lie. The amount of your refund has no bearing on how much tax you paid. It just means the amount withheld was closer to being correct. Refunds happen because you overpaid and is no measure of your total tax from one year to the next.
Democrats just can't admit when Trump does something right.