Like all honest labor, America's military is paid after it does the work. For years, their pay checks have been sent out the first of the following month. President Obama apparently felt it unfair for the Treasury Department to work on New Year's Day. When he signed this year's Defense Authorization Bill, he ordered our military to receive their December pay by December 31. That made 2011 a 13-month year for tax purposes! Without actually receiving one dollar more for their sacrifices, it shoved them into a higher 2011 tax bracket. Most are still unaware of their commander in chief's decision and many will also be hit with 2011 tax penalties on April 17 for not having withheld enough.
For most, that increase in reported 2011 federal income will echo through their state taxes. Retirees will also be faced with paying additional taxes on Social Security earnings. Does that mean an 11-month tax year for 2012? No! While no pay will be "recorded" for January, it will again be a double dose in December. My goodness, where does it end? Thank you Mr. President, and thanks to our elected Congress. With friends like you, we don't need enemies.