90 Percent Of Americans Will See An Increase In Take Home Pay By The End Of February Thanks To The Tax Cuts And Jobs Act
- According to the U.S. Treasury Department, 90 percent of Americans will see an increase in their take home pay because of the lower tax rates due to the Tax Cuts and Jobs Act.
- In January, the IRS released updated withholding tables for employers that reflect changes to the tax code made as a result of the Tax Cuts and Jobs Act, and these new withholding tables must be implemented by February 15.
- A taxpayer filing as a head of household or single making $50,000 paid biweekly will see an increase in their paycheck of $96.44 or about $48.22 per week.
- House Minority Leader Nancy Pelosi (D-CA) called the Tax Cuts and Jobs Act "wholesale robbery of the middle-class," and characterized the benefits workers have received as "crumbs," however under President Obama she emphasized just how much even $40 could mean to the average family.
- In fact, President Obama repeatedly emphasized how important $40 per paycheck saved from tax cuts was to families across the nation.
WORKERS ARE STARTING TO SEE BIGGER PAYCHECKS BECAUSE OF REPUBLICAN TAX CUTS
As A Result Of The Tax Cuts And Jobs Act, Workers Will See Bigger Paychecks
The IRS Changed Withholding Tables To Reflect Changes To The Tax Code Made In The Tax Cuts And Jobs Act. "The Internal Revenue Service today released Notice 1036, which updates the income-tax withholding tables for 2018 reflecting changes made by the tax reform legislation enacted last month. This is the first in a series of steps that IRS will take to help improve the accuracy of withholding following major changes made by the new tax law." (Press Release, "Updated 2018 Withholding Tables Now Available; Taxpayers Could See Paycheck Changes By February," Internal Revenue Service , 1/11/18)
The IRS Instructed Employers To Implement New Withholding Rates By February 15. "New guidance about how much money employers should withhold for income taxes was released by the Department of the Treasury and the IRS on Jan. 11, after President Trump signed the $1.5 trillion tax overhaul plan into law. Employers were instructed to implement the new withholding rates by Feb. 15, which means most employees will begin to see the effect this month, if they haven't already." (Katie Reilly, "Check Your Paycheck: You Probably Just Got A Surprise Pay Bump," Time , 2/2/18)
Workers Will Start Seeing The Effects Of The Tax Cuts And Jobs Act By February 15. "The administration is asking employers to implement the new tables by Feb. 15 so that workers will begin seeing the effects of the Tax Cuts and Jobs Act by next month." (Brian Faler, "IRS Rolls Out New Tax Withholding Tables To Align Paychecks With Tax Law," Politico , 1/11/18)
The New Withholding Tables Will Lower The Amount Of Money Employers Withhold From Workers' Paychecks, Resulting In A Bigger Paycheck. "These tables tell employers how much to withhold from their employees' paychecks, and 90% of workers should see a decrease in withholding, resulting in more take-home pay when the new guidelines are implemented." (Matthew Frankel, "Paycheck Bump Coming Soon -- Here's How Much You Can Expect," USA Today , 1/16/18)
Ninety Percent Of Americans Will See An Increase In Their Take Home Pay As A Result Of The New Rates
According To The U.S. Treasury Department, 90 Percent Of Americans Will See An Increase In Their Take-Home Pay Due To The New IRS Withholding Rates. "'With this guidance, most American workers will begin to see bigger paychecks. We estimate that 90 percent of wage earners will experience an increase in their take home pay,' said U.S. Treasury Secretary Steven T. Mnuchin. 'The Administration's monumental tax reform legislation continues to provide economic benefits for hard-working Americans. These tax cuts will ensure that American workers are able to keep more of their hard earned income and decide how to spend, invest or save it.'" ("New Withholding Guidelines Under The Tax Cuts And Jobs Act Will Increase Take Home Pay," U.S. Department Of Treasury , 1/12/18)
"Many Americans" Will See An Increase In Take Home Pay In February. "Many Americans will likely see a bump in their paycheck this month as employers withhold less money to account for expected tax cuts" (Katie Reilly, "Check Your Paycheck: You Probably Just Got A Surprise Pay Bump," Time , 2/2/18)
Cari Weston, Director Of Tax Practice And Ethics At The American Institute Of Certified Public Accountants, Stated "That People Are Going To End Up In A Favorable Position." "This means you could start seeing changes to your paychecks as early as this month. 'My general sense in looking at the withholding tables, is that people are going to end up in a favorable position if they don't do anything,' said Cari Weston, director of tax practice and ethics at the American Institute of Certified Public Accountants." (Darla Mercado, "Expect To See These Tax Changes To Your Take-Home Pay This Month," CNBC , 1/11/18)
A Taxpayer Making $50,000 Will See A $48.22 Increase In Take Home Pay Per Week Because Of The Tax Cuts And Jobs Act
A Taxpayer Making $50,000 Paid Biweekly Would See An Increase In Their Paycheck Of $96.44 Or About $48.22 Per Week. "Let's say that you're a single taxpayer and you earn $50,000 per year, paid biweekly. For each pay period, you earn $1,923.08 before any taxes are withheld. When you filled out your employment paperwork, you claimed two allowances … we find that your per-paycheck withholding should drop to $168.09. Your paychecks should go up by about $96.44 because of the lower federal withholding called for by the tax-law changes." (Matthew Frankel, "Paycheck Bump Coming Soon -- Here's How Much You Can Expect," USA Today , 1/16/18)
DESPITE THEIR CRITICISM OF THE TAX CUTS AND JOBS ACT, EVEN DEMOCRATS KNOW WHAT $40 A WEEK MEANS TO LOW- AND MIDDLE-INCOME AMERICANS
Democrats Have Downplayed And Belittled The Real Impact The Tax Cuts And Jobs Act Has Had On Middle-Class Americans
Democratic Lawmakers Have Dismissed Benefits Of The Tax Bill Offered By Companies In The Wake Of The Tax Bill's Passage As A "Public Relations Stunt." "But Democratic lawmakers and corporate watchdogs say the move is a public relations stunt that pales in comparison to the profits the companies' shareholders and executives will reap because of the lower tax rates." ("Bonuses For Some Workers After Tax Bill Passes," CBS News , 12/26/17)
House Minority Leader Nancy Pelosi (D-CA) Characterized The Benefits Middle-Class Workers Have Received From The Tax Cuts And Jobs Act As "Crumbs." "House Minority Leader Nancy Pelosi on Thursday dismissed as 'crumbs' the recent wave of bonuses given to workers by large corporations in the wake of the Republican tax law's passage. 'In terms of the bonus that corporate America received versus the crumbs that they are giving workers to kind of put the schmooze on is so pathetic,' Pelosi told reporters." (Bob Bryan, "Nancy Pelosi Says Companies' Bonuses To Workers Because Of The Tax Bill Are 'Crumbs,'" Business Insider , 1/11/18)
- Pelosi "Owned" Her Crumbs Statement Saying "Crumbs For Everyone Down There. I'll Repeat That." "Pelosi is owning her crumbs comment. 'A banquet for everyone up here, crumbs for everyone down there. I'll repeat that.'" (Erica Werner, Twitter Feed , 2/15/18)
Pelosi Equated Passage Of The GOP Tax Bill With "The End Of The World" And Economic "Armageddon." "Rep. Nancy Pelosi (D-Calif.) hammered the Republicans' tax-code overhaul Monday evening as a culture-shaking economic 'armageddon' that would haunt the working class for years to come. Flanked by other top Democrats in the Capitol, the minority leader blasted Republicans for championing a tax proposal she equated to 'the end of the world.'" (Mike Lillis, "Pelosi Denounces GOP Tax Reform As 'Armageddon,'" The Hill , 12/4/17)
Pelosi Said That The Tax Cuts And Jobs Act Was "Wholesale Robbery Of The Middle Class." "This is the worst bill to ever come to the floor of the House, with stiff competition for what some of the things they have tried to do, the worst bill in history, because of the number of people it affects, the amount of money it sucks up to the higher income, and the impact on our future deficits. It's an all-out looting of America, the wholesale robbery of the middle class." ("Sweeping GOP Bill Set To Revamp U.S. Tax Code, Slash Corporate Rate," PBS , 12/19/17)
Sen. Ron Wyden (D-OR) Called The Bill A "Middle-Class Con Job," And Asserted That It Would Not Benefit Middle-Class Americans. "And Mr. Wyden and other Democrats are not waiting: They are already attacking the legislation as a bait-and-switch in the hopes that they can find a path forward to a bipartisan tax bill that they believe will truly benefit middle-class Americans. 'This is a middle-class con job,' Mr. Wyden said." (Jim Tankersley, "Democrats Attack Tax Bill As A 'Middle-Class Con Job,'" The Washington Post , 10/29/17)
Senate Minority Leader Chuck Schumer (D-NY) Stated "It's Wrong To Assume" That The Tax Cuts And Jobs Act Will Create Higher Wages. "Still, it's wrong to assume Republican tax reform will create jobs and higher wages, Schumer's office wrote in a statement released Wednesday. AT&T 'is the exception, not the rule, when it comes to the biggest corporations spending their windfall,' the statement said. 'Over the past several weeks, major companies have announced an astonishing $83.7 billion in share buybacks, anticipating the passage of tax reform.'" (Nyshka Chandran, "Republican Tax Plan Will Increase Share Buybacks And Dividends - Not Wages: Chuck Schumer," CNBC , 12/20/17)
But Despite Their Dismissive Demeanor, Democrats Under President Obama Seemed To Know How Important Even An Extra $40 A Week Can Be
The Obama Administration Created A Website That Touted What $40 Dollars Per Paycheck Meant To Average Americans. "I had forgotten about this 'what-$40-a-paycheck-means-to-average-Americans' website put up by the Obama White House, back in the days when $1,040 a year wasn't considered crumbs. h/t @charlescwcooke" (Glenn Kessler, Twitter Feed , 2/6/18)
The Obama Administration Devoted A Website To Explaining What $40 A Week Means To Average Americans. ("What $40 Means To Americans Across The Country," The White House , Accessed 2/14/18)
In 2011, President Obama Said "Anyone Who Knows What It's Like To Stretch A Budget Knows That At The End Of The Week, Or The End Of The Month, Forty Dollars Can Make All The Difference In The World." PRESIDENT BARACK OBAMA: "Now, if you're a family making about $50,000 a year, this is a tax cut that amounts to about $1,000 a year. That's about 40 bucks out of every paycheck. It may be that there's some folks in the House who refuse to vote for this compromise because they don't think that 40 bucks is a lot of money. But anyone who knows what it's like to stretch a budget knows that at the end of the week, or the end of the month, $40 can make all the difference in the world." (President Barack Obama, Remarks By The President On The Payroll Tax Cut , Washington, D.C., 12/22/11) TIMESTAMP: 02:21-3:02
During A Promotional Video, President Barack Obama Said That Anyone Trying To Stretch A Budget Would Tell You That Forty Dollars At The End Of A Week Or Month "Can Make All The Difference In The World." OBAMA: "Anyone who knows what it's like to stretch a budget knows that at the end of the week or at the end of the month, $40 can make all the difference in the world. The response has been overwhelming. We haven't seen anything like this before. Over 30,000 people have written in so far, as many as 2,000 every hour. We're still hearing from folks. Some of the folks who responded are on stage with me here today." ("The Difference: What 40 Dollars Means," The Obama White House , 12/23/11)
During The "What Forty Dollars Means To Americans Across The Country" Campaign, The Obama Administration Said That "$40 Is Real Money For Working Families" That Buys School Lunches, Gas, And Helps With Medical Expenses. " The thing is, $40 is real money for working families, as people all over the country told us. That money buys things like school lunches, the gas needed to get to work or visit ailing relatives, and co-pays for doctor visits and essential prescription medicines." ("What $40 Means To Americans Across The Country," The White House Of President Barack Obama , Accessed 2/6/2018)
In 2011, Pelosi Praised President Obama's Extension Of The Payroll Tax Cut, Calling It "A Victory For All Americans" And Touted The Cut's "Nearly $40 Per Paycheck In The Pockets Of The Average Family." "Today is a victory for all Americans - for the security of our middle class, for the health of our seniors, and for economic growth and job creation. The American people spoke out clearly and, thanks to President Obama's leadership, 160 million Americans will continue to receive their payroll tax cut - nearly $40 per paycheck in the pockets of the average family. I salute the work of the unified House Democratic caucus on behalf of the American people." (Press Release, "Pelosi Statement On Passage Of The Bipartisan Payroll Tax Cut Extension," Rep. Nancy Pelosi , 12/21/11)
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