Many Democrats in Congress blame President Trump's Tax Cuts and Jobs Act, which took effect on Jan. 1, 2018. They claim that the report is proof that the Jobs Act was nothing but tax cuts for the rich.

When the report came out, Senator Kamala Harris of California, an announced 2020 Democrat Presidential candidate, tweeted:

"The average tax refund is down about $170 compared to last year. 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%."

But tax expert Dan Pilla says Harris and others have it all wrong. A tax refund, by itself, he says, is no measure whatsoever of whether your tax liability went up or down. The refund is simply a measure of what you overpaid.

He adds that the fact that refunds are lower this year is not necessarily a bad thing. You get a refund only because you paid in too much to begin with. If your refund is down, that likely means you didn't overpay as much as last year. And that's a good thing.

Pilla also says that people need to properly adjust their payroll withholding so they don't overpay in the first place. He says too many taxpayers treat the withholding system as some kind of savings account, which he says is the worst way to manage your money.

When you manage your tax payments properly, you have the money in your hands, where it belongs. That money is available for you to use and enjoy in a manner that best suits you and your family. That way you can save or invest in real wealth-building, vehicles, pay down debt or fund business needs, or just pay for fun and recreation. In any event, you—not the government—are in charge of your own money. Subscribe for free to Breaking Christian News here

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