By Tom Stauder
August 16, 2019
*Editor’s Note: CC Biz Buzz is a new monthly column series that will feature insightful commentary from a member of the Columbia College Robert W. Plaster School of Business faculty.
Nearly a century ago, T.S. Eliot started his famous poem with “April is the cruellest (Eliot’s spelling) month…” I don’t think he was referring to filing taxes, but it does seem apt. When the new federal income tax laws took effect in 2018, most of us expected to pay less tax. And indeed, most of us had lower tax bills, but it did not show up in the form of a fat refund at the end of the year. Instead, the IRS, anticipating the lower tax rates, instructed employers to withhold less money from each of our paychecks. Thus, our tax cut was meted out to wage earners a little bit each month, in the form of larger paychecks. (Did you notice?)
READ MORE: CC Biz Buzz: Mid-Year Tax Tuneup