It seems with the new tax laws and the IRS rush to get it right, they got it wrong. Many Americans who anxiously await their tax refund checks in the spring may be surprised to get a tax bill instead. The Republican push you sell us their new tax plan is the culprit.
Remember that little extra money you received in your paychecks? Remember when the president said you’ll “start seeing a lot more money in your paycheck?” The problem is, the IRS needed to write a new tax calculator for employers after Congress rushed through its new tax plan, and in that rush they created a new calculator, but most employers are still using the old tax calculator. It seemed like you got a tax break, but you really didn’t.
The new tax plan was going to be a costly mess, the budget office told the president and congress, but they didn’t want to hear it. They had a plan and they were sticking with it.
Millions of Americans should have been paying more withholding taxes, not less, and for those Americans it will mean that at the end of the year instead of getting a tax refund, they will owe the IRS money.
Congress rushed to implement their new tax plan, which concerned Democrats, so they asked the Government Accountability Office to look into the affect it may have on tax payers. The findings were not good. Oregon Democrat Ron Wyden, a member of the Senate Tax Writing Committee, warned that “the Trump administration is tampering with Americans’ paychecks, resulting in a whopping tax bill next year.” Of course the Democrats didn’t have enough votes to stop the tax plan, so it passed.
The IRS had studied the new plan too. When they came back with their findings, their report wasn’t good for American tax payers either. The new tax calculator was not popular with employers and most continued to use the old calculator. The result of which, the IRS has concluded “may cause a significant number of taxpayers to be under-withheld when they file their 2018 personal income tax returns.”
The tax plan was popular with the wealthiest of Americans, and Trump wanted it to be popular with the rest of Americans too, which in turn caused the government to drag its feet, employers to resist a new tax calculator and you and I to pay more in taxes in 2019. Don’t hold your breath waiting for a tax refund next year and wave goodbye to any gains you’ve received in your paychecks this year. Thanks for the tax cut Mr. Trump.