Duane, Is That Right? Bigger tax refunds for all?

CINCINNATI (WKRC) - When the new tax law passed, Republicans made it clear it would help many Americans. "The new tax plan is designed to help Americans, especially people who are blue-collared workers," Kevin Hassett, chairman of the Council of Economic Advisers, said. It was a theme echoed time and time again by President Donald Trump: "The rich will not be gaining at all with this plan. We're looking for the middle class," he said. But is that right? There's no question: The vast majority of Americans did get their taxes cut, but the group getting the biggest tax cuts are the rich. The wealthiest Americans, averaging a little more than $347,000 a year, had their taxes slashed by 2.9 percent. The middle class, making $65,000 a year, got a 1.6-percent cut. That's 46 percent less of a break than the rich. The cuts go down the less you earn. Still -- a tax cut is a cut, so why are so many people surprised this year to find that their refunds are much smaller or, worse, that they owe money? That's because the new tax law changed how much is being withheld on your paycheck. You were taxed less and did get more money, but it was spread out over a year and you may not have even noticed. You probably figured this out when you filed your returns. According to the IRS, the number of refunds paid out this year over last is down 26.5 percent. While it seems worse now that you've filed, you did get a tax cut, but statements that new tax law was a middle-class cut, not a tax cut for the rich, are WRONG.