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What’s the first thing you think of when you hear the words “fake news”?
Russia collusion? CNN? The Onion?
Well, the latest whopper is about tax reform. The media is now engaged in an all-out propaganda war. Take a look at these recent mainstream media headlines:
CNBC:“Average tax refunds are down 8.4% in wake of Trump tax cuts” Business Insider:“IRS tax returns are down and Americans are upset, blame Trump” MSN News:“What smaller tax refunds could mean for summer travel”
Americans may not be able to take a summer vacation...because of Trump! In fact, a new NBC/WSJ poll found that just 17% of Americans think their taxes were reduced.
Matthew Yglesias, a prominent left-wing activist, was downright giddy at how effective liberals have been at spreading misinformation. He was quoted this week saying:
“Nobody likes to give themselves credit for this kind of messaging success, but progressive groups did a really good job of convincing people that Trump raised their taxes when the facts say a clear majority got a tax cut.”
The Tax Policy Center is no conservative think tank. But they understand how to use a calculator and admit that nearly 65% will see a cut in their taxes. Another 29% will see no change in their taxes, while just 6% will pay more.
The average American family paid $2,300 less in taxes last year because of the Trump tax cuts.
Of course, many are mistakenly judging the benefits of the law based on the amount of their refund check.
But again, there’s more to the story.
For years, politicians wanted the IRS to maximize withholding from worker paychecks. Why? Because when it’s time to file your taxes, you get a big fat refund check. It keeps voters happy but more importantly, it keeps the truth about high taxes nicely hidden.
And politicians like happy voters.
But what’s good for politicians is not so good for workers who live paycheck to paycheck.
So the Trump administration ordered the IRS to be more realistic with their calculations on how much money is taken from our paychecks -- aiming to put more money in our wallets throughout the year. So most Americans have been receiving their refund throughout the year in incremental payments in their paychecks!
DON’T FORGET: this is YOUR money we’re talking about. Any excess withholding paid back to you in a refund is essentially a free 0% loan that you made to Uncle Sam.
The tax reform law wasn’t perfect. We pushed for more aggressive credits for children and families. Congress did significantly expand the standard deduction and DOUBLE the child tax credit. Nevertheless, there’s more work to be done.
Tax reform worked. The economy continues to grow. More people are employed and more jobs are available than at any time in our nation’s history. And most importantly, families are taking home more of their hard-earned income.
Perhaps Benjamin Franklin’s famous adage needs an update.
The only thing certain in life is death and taxes...