Conservatives complain the the confusion about refunds has overshadowed the argument that the tax law has helped keep unemployment low and sustained the economic expansion.
“It’s unfortunate that the economic growth message lost out to discussion about how many dollars are in my paycheck,” said Adam Michel, a senior policy analyst at the Heritage Foundation.
Tax refunds also have economic sway, according to research from the JPMorgan Chase Institute. Those checks are often the biggest windfall of the year for many Americans, and those who receive refunds have higher bank-account balances for six months after the check arrives. Smaller-than-anticipated refunds could cut into some of the economic security that some taxpayers expect.
“The tax cut was never quite as popular as Republicans hoped and I don’t think the refund numbers help,” Van Houten said. “This will stick with people for a bit.”
This article was provided by Bloomberg News.