WASHINGTON, D.C.— Today the Treasury Department and the Internal Revenue Service (IRS) confirmed what Republicans have been saying for months and formally announced new tax withholding tables under the newly enacted Tax Cuts and Jobs Act that will result in 90% of wage earners seeing a bigger paycheck as a result of lowered taxes. Employers must implement the new withholding tables by February 15 of this year.
As Treasury Secretary Steve Mnuchin stated in this announcement, “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. 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.”
This news comes as already over two million American workers have received news of bonuses, pay raises, and increased benefits from over 150 companies that have passed on their savings under this bill to their employees, and as utility companies across the country lower rates for consumers.
While House Minority Leader Nancy Pelosi and Democrats think this amounts to “crumbs,” outside of elite circles in Washington in communities across America, these substantial savings and increases in take-home pay make a real difference for families trying to make ends meet.
As we see middle-class Americans continue to benefit from these tax cuts and reform, it’s important to ask Democrats why they oppose 90% workers and families seeing an increase in their paychecks.
To see the new withholding tables, click here.
To see an FAQ document on the new withholding tables, click here.
To see the growing list of companies increasing wages, investments, jobs, and bonuses because of the Tax Cuts and Jobs Act, click here.