Instead of taking a reasoned approach the GOP leadership pushed through a tax reform bill. The only reason for the rush is so they could do this:
The taxpayer, the IRS, tax preparers and businesses are paying the price for the rush to pass a tax reform bill, so politicians can claim a political victory. The state of confusion, and the mad rush to understand the quickly passed bill, is underway:
"’I have been a tax attorney over 40 years. I have seen plenty of tax bills. This is unprecedented,’ said Robert Willens, a New York-based tax consultant.
Steven Rosenthal, a senior fellow at the nonpartisan Tax Policy Center, was just one year out of law school in 1986 when Congress last passed a significant revision of the tax code. He, and hundreds of other tax attorneys, spent years watching that process unfold, Rosenthal recalled.
This time, ‘there hasn't been the deliberate and slow unfolding [of the legislation] like there was in '86,’ he said. ‘The whole process has been so opaque and so rushed that few people understand what has been going on…
The Internal Revenue Service has yet to issue guidance on how [employers] should handle its payroll, for instance.
‘They screwed it up. It should have come out earlier, said Chief Financial Officer Mike Trapp [of Griff Paper and Film] ...
ADP, one of the largest providers of payroll services, says it built its system to quickly reflect changes in the tax rate. But this tax overhaul is more complicated, said Pete Isberg, ADP's vice president of government relations. Millions of workers have filed W-4 tax forms telling their employers how much in federal taxes they need to withhold. But that form will not be applicable under the new law, Isberg said.
‘Therefore, every W-4 on file, all 164 million of them, won't be valid starting next month," he said. "We believe every working person is going to need a new W-4.’” The Washington Post
This is only the tip of the iceberg. From payroll tax withholdings to deductions (that may change or disappear), the rush to pass a plan has consequences. Members of Congress are not going to feel the consequences as they smile and tell the American public a political story on tax reform that may not ring true. They will smile (and slap each other on the back) and say, “we did it.”
The people living under the tax code will have to live in a state of confusion, at least for the foreseeable future.
Once again, we are the victims of a politically motivated Washington DC filled with representatives who are more concerned about their future than they are with ours.