Donald Trump, Jr clapped back at California Rep. Kamala Harris who tweeted misinformation about President Trump’s tax reform bill.
Trump, Jr. retweeted Harris’ tweet that referred to Trump’s tax cut as a “middle class tax hike.”
“The average tax refund is down about $170 compared to last year,” Harris tweeted on Tuesday. “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%.”
Don Jr. responded: “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?”
Frustrated taxpayers continue to complain loudly that they received less money in their tax refund checks this year.
It’s as if American taxpayers believe tax refund checks are end-of-year bonuses from the IRS.
The only people who complain about smaller refund checks are misinformed taxpayers who don’t understand that if they keep more money in their paychecks they don’t overpay the government, and they get less money back.
When President Trump signed his new tax reform plan into law in December 2017, taxpayers began seeing more money in their paychecks the following year.
Trump’s new tax law eliminated some standard itemized deductions while increasing single filer deductions to $12,000 and married and joint filer deductions doubled to $24,000.
The more simplified tax code allows people to take the standard $12,000 deduction instead of itemizing their deductions on Schedule A forms.
The new tax bill also increases the child tax credit from $1,000 per child to $2,000, which benefits single mothers with 2 or more children.
If you are expecting a tax refund check, it simply means you overpaid the government out of your paychecks instead of keeping that money and saving or investing it.
Basically, you give the government free no-interest loans out of your paychecks, which the IRS then repays you in the form of a tax refund with no interest.
The IRS doesn’t want taxpayers (especially low-income taxpayers) to stop overpaying their taxes.
Uncle Sam appreciates the billions of dollars in interest-free loans from taxpayers who don’t understand how the tax code works.
Wealthy taxpayers keep more money in their paychecks so they have more money to spend. They don’t expect to receive tax refunds because they saved their money in interest-bearing investment funds rather than overpaying the government.
Low-income and middle class workers get less money in their paychecks because they overpay the government in order to get a bigger refund check.
Self-employed taxpayers don’t receive refunds because they rarely overpay their taxes. Self-employed people hire accountants to pay the government exactly what they owe and not a penny more.
Like the wealthy, self-employed taxpayers re-invest their money back into their businesses rather than overpay the government.
