As reported by Breitbart
Democrats looking to score points against President Donald Trump this week focused attention on data from the government that showed refund checks going out to early filers were smaller than they were a year ago.
Sen. Kamala Harris (D-CA) falsely claimed that smaller refunds indicated that the tax cuts amounted to a “middle-class tax hike.”
The smaller refund checks, however, were not indicators that taxes have gone up. In fact, two-thirds of American households got a tax cut this year. For middle-class families with children, over 80 percent got tax cuts.
A smaller refund check merely indicates that early tax-filers overpaid their taxes by a smaller amount throughout the year. In other words, taxpayers kept more of the money they earned — that is, money they did not owe to the federal government.
Tax filing season kicked off on January 28, marking the first time taxpayers were filing their returns under the Tax Cuts and Jobs Act. The first refund checks went out last week, and data from the Internal Revenue Service (IRS) showed the average refund had declined 8.4 percent, to $1,865, for the week ending February 1.
A large refund check might seem like a bonus to some taxpayers but it is merely a sign that taxes were overpaid during the year. Essentially, a taxpayer who gets a large refund gave an interest-free loan to the government. That money would have been better used if it had gone toward paying down bills or had been saved in a bank account that paid interest.
Donald Trump Jr. pointed this out in a reply to Harris on Tuesday.
Of course refunds are down. People are paying less in taxes and the code is simplified. A refund means you overpaid and got money back. When you pay less the refund will be less.
Do you really not understand that?
Now do the effect of proposed Dem tax hikes has on income!!! https://t.co/Xu7Yz9ir3b
— Donald Trump Jr. (@DonaldJTrumpJr) February 12, 2019
A tax cut is a reduction in what people owe the government for the year, compared to what they would have owed on the same income in the prior year. Thanks to a larger child tax credit for 2018, families with children will pay much less in taxes and many more will owe nothing at all.
You can read more here.