Oooh! Are we all excited yet about our big PAY HIKE due to the gop tax cuts?
I received my retirement check today for March 1 and it is true that my "take home" is increased due to a reduction of the withholding for federal taxes. Who doesn't love a pay increase?
Smoke and mirrors are still basic props for governmental fiscal operations-- across a wide range of activities, I might add, up to and including the creation of "money" out of thin air. But books could be written on the subject-- and little would be fixed thereby. So back to the issue at hand.
The payer of my retirement stipend has no knowledge of my over-all income status. He simply uses a federal table of deductions and applies it to the amount I have earned for the month. And what he doesn't know doesn't hurt him-- but it hurts me, but only to the extent that I allow myself to be the victim of the ruse that I have gotten a "tax cut."
Because the Lord has blessed me I have certain other incomes in addition to the one referenced above. Hence I pay taxes monthly on them, but in addition I submit a quarterly ES voucher with payment to the IRS four (4) times a year. And wind up, usually, writing a fifth check in April, but that is also another issue.
So, this "pay increase," thank you Washington, DC, that I receive this month will ultimately cost me bigger checks direct from my bank account to the IRS. But wait! You say. Your 2018 taxes will be less in the long run.
Can you repeat after me: Poppycock!
Will not. I have already done the math.
If the pants of every liar in DC caught fire simultaneously the entire district along with the states of Virginia and Maryland would go up in flames.
(But, you say, if you are armed with this knowledge why don't you have your payers withhold larger amounts in the first place? Yes, I could do that. And how does that reduce my taxes?)