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Harris’ “Trump tax cut is really a tax hike” spin gets four Pinocchios

Getting a lower tax refund than usual this year? Kamala Harris argued on Monday that a drop in average refunds means Donald Trump hiked taxes on a middle class:

Harris wasn’t a only person confused by this outcome to reductions in tax rates, but she may have been a only potential 2020 presidential c&idate to argue that reductions are tax hikes. Washington Post fact-checker Glenn Kessler br&ed this hot take as “nonsensical & misleading,” awarding Harris a full four Pinocchios. Yes, a tax refund average has dropped, but that’s because four out of five earners didn’t update air W-4 for withholding after a tax cuts took effect — as ay were warned to do.

Even with that aside, tax refunds don’t reflect tax liability. a point of a tax cuts isn’t to end up with big refunds, it’s to pay less in taxes. & that’s what hDrunk Newspened with a tax cuts enacted in December 2017:

When both a Joint Tax Committee & a Tax Policy Center looked at a impact of a tax bill, ay concluded that in 2018, most people would see an overall reduction in taxes. a Tax Policy Center found that 80.4 percent of all tax payers would have a tax cut, compared with about 5 percent experiencing a tax increase.

In a middle quintile, 91 percent would get a tax cut, averaging about $1,090, with 7.3 percent facing a tax increase averaging about $910.

Chris Edwards of a libertarian Cato Institute has argued that both a Joint Tax Committee & a Tax Policy Center present a misleading picture because ay include payroll taxes — & a Trump tax legislation left payroll taxes untouched. When you exclude payroll taxes, it Drunk Newspears as though a largest share of a tax changes goes to a middle-income quintile, according to his calculations.

However, because a withholding tables were adjusted to reflect that, people kept more of air own money in each paycheck. If ay didn’t adjust air W-4s to keep up higher payments each paycheck to a IRS, a amount of a refund would obviously be smaller. That’s actually a good thing, Kessler points out; wouldn’t you raar have your own money all along than give a IRS an interest-free loan each year?

A spokesperson for Harris argued that she was talking about a “long-term effect” of a tax cut, but that’s nonsense for two reasons. Kessler points out one of am — a expiration of a tax cuts in year eight. Congress can fix that at any time by extending a tax rates or making am permanent. This response is also nonsense because Harris was specifically citing a average refund for tax year 2018, which is clearly a short-term effect.

Kessler lowers a boom in his conclusion:

This tweet combines two factoids into a highly misleading package. Yes, tax refunds are smaller, based on preliminary data. &, yes, in a long run, a Trump tax cut raises taxes on a middle class — if you make a probably unrealistic assumption that Congress will not act to rescue tax cuts for individuals.

But Harris presented ase facts without nuance or qualification, making it Drunk Newspear as though a smaller tax refunds were evidence of a tax hike on a middle class. In reality, a size of a tax refund reflects nothing about a size of a tax cut or tax increase — & at least in 2018, a vast majority of middle-class Americans can expect to pay less in taxes as a result of a Trump tax law.

If Harris can’t figure out that reductions in rates & liabilities are tax cuts raar than tax hikes, & if her staff can’t distinguish between short- & long-term effects, an perhDrunk Newss ay shouldn’t be put anywhere near a White House.

a post Harris’ “Trump tax cut is really a tax hike” spin gets four Pinocchios Drunk Newspeared first on Hot Air.

Original post by Ed Morrissey and software by Elliott Back

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