The Trump Tax Cut: Even Worse Than You’ve Heard

[Jim in CT]

Originally Posted by wdmso

not sure how your retirement works mine is based on. base pay last 3 years tax break does nothing to increase my retirement pay compared to a pay raise ... and not all states tax pension to start with

You literally have no idea what you are saying.

The Trump tax cut deals with FEDERAL income tax rates, not state income tax rates. If you were drawing on your pension, the federal tax cut would almost certainly have given you a bump in your take-home portion of your pension.

A federal tax cut will not increase your gross pension payment, because that is determined based on your contract. A federal tax cut will increase your net pension payment, and net is what matters.

If your gross pension is, say, $40,000 a year, and your federal tax rate decreases, then you have more money from each pension check How can you deny this?

My net pay increased by $200 a month after the tax cuts took effect, and my gross pay did not change. The increase was because of reduced federal withholding.

You are being completely irrational.