CNN’s chief business correspondent Christine Romans kicked off Tax Day 2019 by explaining the effects of President Donald Trump’s tax cuts — and it looks like most Americans are benefitting.
“Winning? Well, most U.S. taxpayers,” she said. “Data from the congressional joint committee on taxation showed that more than 65% of tax filers will see their overall tax burden fall at least a hundred bucks.”
On the losing side, she pointed to those who were expecting a bigger refund and were shocked to find out that wasn’t the case.
“Losing? People who thought that getting a tax cut would mean a bigger tax refund,” Romans explained. “That’s not happening. New figures from the Treasury show the IRS issues about $6 billion less in refunds this year, with refunds down an average of 20 bucks.”
Today is Tax Day. "The first under President Trump's new tax law," explains @ChristineRomans as she breaks down the winners and losers.
— CNN Newsroom (@CNNnewsroom) April 15, 2019
However, Romans explained that those Americans likely still benefited from the tax cuts because a lower refund could mean larger paychecks throughout the year as people kept more of their income:
“For many, it means those workers took home more money in their paychecks during the year because employers began using the new IRS income tax withholding tables. In other words, you paid less in taxes, but you still got a smaller refund.”
Companies were also winners in the scenario as a result of slashing the corporate tax rate to make the U.S. more competitive with other countries.
“The tax law slashed their corporate tax rate from 35% to 21%,” said Romans, pointing out that many companies do not pay the full corporate tax rate even when it was at the higher rate.
As IJR Red reported, Democrats like Senator Kamala Harris (D-Calif.) and Rep. Ted Lieu (D-Calif.) have criticized the tax cuts, claiming that a lower refund was a “scam” that hurt Americans. However, as CNN’s Romans pointed out, this does not seem to be the case for the majority of taxpayers this year.