What to Know in Washington: Shrinking Refunds Haunt GOP Tax Law
By Zachary Sherwood
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Getting a tax refund is a springtime tradition that Americans love as much as Easter candy.
But fewer people are getting refunds this year and that’s causing angst for Republicans who want to convince voters that the 2017 tax overhaul really did give them a tax cut. If middle America can’t be persuaded, it could have big implications for the long-term viability of the overhaul, and how consumers spend their extra income.
Republicans are on the defensive. The once little-noticed ritual of releasing weekly refund data during the tax filing season has become politically fraught, with unfavorable data being released late on a Friday night, and better figures a week later causing Treasury Secretary Steven Mnuchin to take to cable news to tout success.
“Taxes are down so refunds should be down,” Mnuchin told the House Ways and Means Committee yesterday. Mnuchin added that many people did not change their withholding and so refunds are consistent with last year.
Democrats see an opportunity to use the drop in refunds to hammer Republicans in the 2020 campaign for seeming to favor the wealthy and denying middle- and lower-income people the refunds they count on. And polling shows the GOP has work to do. The tax law is the Republican Party’s signature legislative achievement, but still only about 39 percent of people approve of it, according to a series of polls conducted this year. Read more from Laura Davison.
Meanwhile, Democrats on the House and Senate tax-writing panels have found some places where they agree with Mnuchin. Mnuchin appeared before both committees yesterday, in planned hearings on the latest White House budget proposal. Democrats will need bipartisan support and administration buy-in to make progress on their top priorities in a divided government. Lawmaker questions seemed to acknowledge the need for some consensus. Read more from Allyson Versprille and Kaustuv Basu.
Photographer: Daniel Acker/Bloomberg
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What Else to Know Today
Terrorist Attacks on Two New Zealand Mosques: New Zealand has suffered its worst mass shooting in modern history, with 49 people dead and more than 20 seriously injured after a terrorist attack at two mosques in the South Island city of Christchurch. A man in his late 20s has been charged with murder and should appear in a local court tomorrow morning, Police Commissioner Mike Bush told a news conference late on Friday. Three other armed people were apprehended but police are unsure of their possible involvement and are still working through events, he said. Read more from Matthew Brockett and Tracy Withers.
Brazil Seeks Nuclear Pact: Brazil’s energy minister said the country plans to sign an accord next week with Trump that could pave the way for U.S. companies to explore the Latin American country for uranium and invest in new nuclear-power plants. Bento Albuquerque, a former admiral who once ran the Brazilian Navy’s atomic program, met with U.S. Energy Secretary Rick Perry in Houston this week and discussed creating a bilateral forum on energy cooperation that would include nuclear projects. That’s expected to be part of a memorandum signed by Brazilian President Jair Bolsonaro on his first trip to the White House next week, Albuquerque said yesterday in an interview. Read more from Sabrina Valle.
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To contact the reporter on this story: Zachary Sherwood in Washington at zsherwood@bgov.com
To contact the editors responsible for this story: Loren Duggan at lduggan@bgov.com; Giuseppe Macri at gmacri@bgov.com
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