Fox News tells Americans to stop complaining about their shrunken tax refunds

Josh Israel

Josh Israel Senior Investigative Reporter, Think Progress

As Americans begin to prepare their 2018 federal tax returns, many are facing the unpleasant surprise that their tax refunds will be smaller this year or that they may even owe money to the government. This comes despite — or perhaps because of — the tax bill passed by the Republican Congress in late 2017 and signed by President Donald Trump, which Trump falsely promised would give everyone a tax cut, but actually raised taxes on many middle class Americans.

On Wednesday, Fox & Friends attempted to spin the situation, blaming taxpayers who should have somehow known to have adjust their withholding a year ago and should have saved more.

Noting that the average tax refund has dropped 8.4 percent since last year, guest and Fox Business Network host Charles Payne claimed Americans should have used their “fatter paychecks” more wisely.

“Here’s the thing. For the most part, the IRS is telling everyone that they just simply did not make the proper adjustments on the withholding at the beginning of the year. So they have been making all of this money,” he said.

He added that employers and taxpayers should have known better, because the Internal Revenue Service “put a lot more memos out” about how to recalculate payroll deductions.

“Of course most people didn’t do that. While people were obviously seeing fatter paychecks they were still counting on that refund they always got. Which is interesting because, you kind of hinted at it, that we would allow the IRS to have like a $2,000 loan, our money, right? Hold on to it because we overpaid. So people should probably consider making these adjustments anyway, unless you want to give the IRS two or three grand of your money to hold for a year. Maybe they can make the interest on it and you won’t.”

The “fatter paycheck” claim applies mostly to higher income earners rather than the average American. Most people did not notice a significant increase in their paychecks as a result of the bill, which mostly benefited the very rich and corporations.

Rep. Kevin Brady (R-TX), lead author of the tax bill, also tried to persuade taxpayers to be grateful for their diminished returns this week, tweeting a misleading claim that tax refunds had nothing to do with the overall tax bill.

“Refunds are a sign you’re overpaying the IRS monthly,” he wrote. “Most Americans got tax cut in 2018 paychecks — when needed the most. 90% of middle class got [a] $2,100 [average] tax cut.”

Rep. Warren Davidson (R-OH), who backed the bill, incorrectly claimed that tax refunds are down because most people “owed less income tax.” And Sen. John Cornyn (R-TX), who helped push the bill through the Senate, argued “less taxes = less withholding = less refunds” — a gross oversimplification.

According to the Tax Policy Center those in the bottom 20 percent of earners likely saw an average tax cut of about $60 total for the year. The next 20 percent could expect just a $380 total cut, while the top 0.1 percent of Americans saved an average of more than $190,000.

***

Reposted from ThinkProgress

Josh Israel is a senior investigative reporter for ThinkProgress.org at the Center for American Progress Action Fund. Previously, he was a reporter and oversaw money-in-politics reporting at the Center for Public Integrity, was chief researcher for Nick Kotz’s acclaimed 2005 book Judgment Days: Lyndon Baines Johnson, Martin Luther King Jr., and the Laws that Changed America, and was president of the Virginia Partisans Gay & Lesbian Democratic Club. A New England-native, Josh received a B.A. in politics from Brandeis University and graduated from the Sorensen Institute for Political Leadership at the University of Virginia, in 2004. He has appeared on CNBC, Bloomberg, Fox News, Current TV, and many radio shows across the country.

Posted In: Allied Approaches

Union Matters

The Big Drip

From the USW

From tumbledown bridges to decrepit roads and failing water systems, crumbling infrastructure undermines America’s safety and prosperity. In coming weeks, Union Matters will delve into this neglect and the urgent need for a rebuilding campaign that creates jobs, fuels economic growth and revitalizes communities. 

A rash of water main breaks in West Berkeley, Calif., and neighboring cities last month flooded streets and left at least 300 residents without water. Routine pressure adjustments in response to water demand likely caused more than a dozen pipes, some made of clay and more than 100 years old, to rupture.

West Berkeley’s brittle mains are not unique. Decades of neglect left aging pipes susceptible to breaks in communities across the U.S., wasting two trillion gallons of treated water each year as these systems near collapse.

Comprehensive upgrades to the nation’s crumbling water systems would stanch the flow and ensure all Americans have reliable access to clean water.

Nationwide, water main breaks increased 27 percent between 2012 and 2018, according to a Utah State University study.  

These breaks not only lead to service disruptions  but also flood out roads, topple trees and cause illness when drinking water becomes contaminated with bacteria.

The American Water Works Association estimated it will cost at least $1 trillion over the next 25 years to upgrade and expand water infrastructure.

Some local water utilities raised their rates to pay for system improvements, but that just hurts poor consumers who can’t pay the higher bills.

And while Congress allocates money for loans that utilities can use to fix portions of their deteriorating systems, that’s merely a drop in the bucket—a fraction of what agencies need for lasting improvements.

America can no longer afford a piecemeal approach to a systemic nationwide crisis. A major, sustained federal commitment to fixing aging pipes and treatment plants would create millions of construction-related jobs while ensuring all Americans have safe, affordable drinking water.

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There is Dignity in All Work

There is Dignity in All Work