New IRS Report proves ‘Tax-cuts Are A Scam To The Middle-Class’ Theory is WRONG
Well, well. It looks like the Democrats are going to have a hard time convincing the middle class that they’re worth voting for in 2020.
And the IRS is indicating in new reports that American tax refunds are up on average by 1.3 percent. And while Democrats continue to say that Trump’s Tax Cuts are nothing but crumbs, and that he’s destroying the middle-class and enriching the pockets of wealthy billionaires and corporations, etc, the IRS drops bombshell data that simply puts those theories to a rest.
Maybe it’s time we had more politicians with an understanding of economics and general business experience instead of how to run and win a campaign. Not to infringe on anyone’s constitutional right to run for office, but just as a prerequisite. It’s good to have a scorecard that reflects your capacity to get things done for people instead of lining your pockets with their money.
As reported by USAToday
“The IRS has released new data about tax filing season that has put weeks of overhyped media stories to rest: Compared to last year, refunds are now up 1.3 percent on average. Many politicians were quick to jump to conclusions about how tax refund data had proven that the recent tax cut law was a bad idea, but it’s turning out that the Tax Cuts and Jobs Act has been on the whole a windfall for taxpayers up and down the income ladder.
This debate was always a bit silly. The size of tax refunds is not a useful metric for evaluating tax liability — realistically, the only thing they effectively measure is how accurate the federal withholding tables and individual withholding decisions were. While it’s understandable that many perceive a significant refund as a windfall, the truth is that tax refunds are an interest-free loan the taxpayer gives the federal government, not some sort of financial bonus.
On the other hand, when it comes to tax liability, the vast majority of American families come out ahead. The Tax Policy Center found that 90 percent of middle-class American families would receive a tax cut this year, while the Tax Foundation estimated that middle-class families would receive an average tax cut of 1.7 percent (the most significant reduction of any income level, including the wealthiest).
That didn’t stop Sen. Kamala Harris from stating that this was proof that the Tax Cuts and Jobs Act (TCJA) was a “middle-class tax hike to line the pockets of already wealthy corporations and the 1 percent.” Nor did it prevent Democrats on the House Ways and Means Committee tweeting out an article slamming the TCJA for “falling refunds” just a few hours before the IRS released its updated data showing refunds higher than last year.”