A Taxing Dilemma

The first paycheck of 2018 has been received by most American workers.  And I've seen several posts on Facebook from people lamenting that their take-home pay actually went down by a few dollars, or only went up by a few dollars, then using that "evidence" to criticize the tax cut passed in December.

This is tragic.

It's tragic that people work hard for their money, but don't pay attention to it.  Their paychecks should instead be diverted to someone like The Curmudgeon, who would manage it for them, and put them on a nice little allowance.

To those complainers, let me speak plainly.  And slowly.  Read this over and over and over until you understand it.  I'll even put it in all caps for you:

THE TAX CUT IS NOT YET REFLECTED IN YOUR PAYCHECK.

Take your time.  Keep reading it.  I'll wait.

Okay, now, got it?  See, the IRS hasn't yet had time to update the tax tables for the new brackets, nor to distribute withholding schedules to employers.  So there is no way employers are able to change your pay to reflect the new tax code.  (And no, they wouldn't estimate it - if an employer doesn't accurately withhold, it faces penalties.)

So the effects of the tax cut have not yet been felt by us working stiffs who receive a paycheck.  (Nor have they yet been felt by corporations, yet many of them are already paying bonuses and higher wages to their workers, but that's another post for another day.)

"But wait!" you cry, "My take-home pay amount changed!"

Okay, fine.  Here's what you do:

Look at your most recent pay stub, and compare it to the last one from 2017.  Then figure out why the net amount changed.  (Hint: it'll be due to the amounts that are different between the two pay stubs.)

Maybe you got a small raise, and that's why your check is a little bit more.  Maybe your state taxes changed.  Maybe you changed your withholding by filing a new W-4, and just forgot.  Or maybe your insurance premiums changed.

It's likely insurance, because premiums typically change with every plan year, and most plan years begin January 1.  And insurance premiums almost always go up (especially now, under the not-so-Affordable Care Act).

One thing is for certain: any change in your take-home pay is NOT due to the tax bill, because it isn't yet reflected in your pay stub.  (Go back and read paragraphs five and seven, if it helps.)

Now, once the tax cut is reflected in your take-home pay, to anyone who wants to complain about how small the difference is, let me just say two things: first, check your voter registration.  If you're a registered Democrat, you might want to consider changing your registration.  Because if you want to pay less in taxes, you are by definition a conservative.  Democrats believe in big government, funded by high taxes.  (Usually on everyone but themselves.)  So if you want lower taxes, you're a conservative.

And second, if you search your soul and determine that, no, you're really not a conservative, and you really do believe paying more in taxes is the patriotic thing to do (like your beloved President Obama stated), then by all means, when you file your taxes in 2018, add in the amount you saved from the tax cut and pay the extra tax.  There's no law against it.

Better still, just pay that amount to The Curmudgeon.  I personally guarantee I will deploy those funds more effectively than Congress can.