It’s not a magic trick. Your paycheck really is shrinking.
If you are keeping track, you'll notice your money is going out faster than you earn it. Economist Vance Ginn at the Texas Public Policy Foundation explains why you're seeing that.
“The real wage hasn’t really increased by much over the last 40 years according to this new report from Brookings,” Ginn said.
But the things you buy have been going up in price over the years. And companies, despite making more money, aren't passing those profits on to employees. That said, Ginn tells KTRH you're better off here in Texas than in other states.
“Your money goes farther here in Texas than it would in California and in most places across the nation. That’s due in big part to keeping the cost of living low, to us not having an income tax,” Ginn explained.
But the hope is once tax reform passes, companies will take some of that extra money they're making and saving and give you a bump in salary.