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  • Gregory L Buhrow, MBA,CPA

More Evidence ... Congress is Clueless

House Ways and Means Committee ranking Democrat member Richard Neal (MA) and Senate Finance Committee ranking Democrat member Ron Wyden (OR) recently conveyed their concern to the acting IRS Commissioner David Kautter regarding the possibility of political pressure being exerted on IRS when developing the 2018 federal income tax withholding tables.

The 116th Congress swearing in

They stated that "If a large amount of taxes is underwithheld by employers this year, they pointed out, millions of people will owe taxes next year instead of receiving a tax refund ... and" it will "appear the tax cuts are larger than they really are, with the result that taxpayers will end up owing more money on their taxes next year."

Their apparent logic is that Republicans will unduly influence IRS so that the withholding tables will deliberately underwithhold taxes and the American taxpayer will believe he is receiving significant tax relief during 2018 but will owe tax in 2019 when they complete their 2018 tax returns. This will then pave the way for a Republican landslide in the 2018 mid-term elections.


Does Congress not understand that the withholding tables have absolutely nothing to do with tax liability? It only determines how much is paid into the Treasury during the year and can be adjusted using Form W-4. Then, based on the tax liability versus the amount withheld, one either owes tax or receives a refund of the tax overwithheld.

Withholding has nothing to do with tax liability.

Another example that Congress is clueless when it comes to tax legislation ...

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