Skip to comments.Tax Reform Is Boosting Take-Home Pay for Millions of Americans. Here’s the Proof.
Posted on 03/30/2018 10:44:01 AM PDT by Tolerance Sucks Rocks
For a nation accustomed to instant gratification, the Tax Cuts and Jobs Act is a winner.
Before President Donald Trump even signed the bill, companies were announcing employee pay raises, bonuses, and increased investments to grow their businesses and bring operations back from overseas.
Among the first out of the gate was AT&T, which said it would give $1,000 bonuses to more than 200,000 nonmanagement employees and make an additional $1 billion investment in the United States. Boeing put $100 million toward training, education, and other workforce development. Walmart expanded paid parental leave and boosted starting wages to $11 an hour.
Then in January, the happiest place on earth got a little happier as The Walt Disney Co. announced it would invest $50 million in an education program that covers tuition costs for hourly employees and would distribute $1,000 cash bonuses to more than 125,000 employees.
Hundreds of smaller, local businesses also joined in. Wisconsin-based Copperleaf Assisted Living handed out $60,000 in bonusesthe companys entire tax reform savings. Family-owned Jordan Winery in Californias Sonoma County, announced $1,000 bonuses for all eligible employees.
In a tightening labor market, its more important than ever for employees to feel valued and acknowledged, said owner John Jordan. Take-home pay for most American workers will increase in 2018, but why wait?
And that was just the beginning. Millions of hardworking taxpayers are now enjoying the boost in take-home pay.
The new tax law lowered rates and raised the income thresholds for most tax brackets. As a result, 90 percent of Americans will get to keep more of what they earn, according to the Treasury Department. For a single taxpayer earning $50,000 annually, this translates to an extra $50 a weekthats more than $2,500 a year.
Whats more, by nearly doubling the standard deductionits now $12,000 for individuals and $24,000 for married couplesthe law widened the zero tax bracket. For many taxpayers, this eliminates the time-consuming and at times baffling process of itemizing deductionsa giant step toward a fairer, simpler tax system.
House Minority Leader Nancy Pelosi has characterized the benefits of tax reform as insignificant, and, à la Marie Antoinette, crumbs. But ordinary Americans see it differently. More than half of those recently polled by The New York Times said they approve of the new law.
And thats sure to grow as long as Congress doesnt sabotage our newfound tax relief by reverting to business as usual.
Among the ill-advised proposals currently on the table is an extension of $11.3 billion in tax breaks for politically connected special interests. Tax reform was launched in large part to unrig the economy and do away with handouts for a few powerful industries at the expense of hardworking taxpayers. Approving generous tax carve-outs for select groups, like racehorse owners, Puerto Rican rum producers, and green energy companies would be a giant step backward.
Another threat is a 25-cent-per-gallon gas tax hike that some lawmakers are floating as a way to help fund a $1.5 trillion infrastructure modernization plan. This would nearly double the federal gas tax and cost the average family close to $300 a year, snatching back a good portion of the savings from tax reform.
Even worse, increasing gas tax revenue is unnecessary. Right now, a significant portion of federal transportation dollars meant for highways and bridges is diverted to pay for things like bike paths and boardwalks.
Ending this practice along with smarter spending and the elimination of costly, restrictive regulations could provide adequate savings to fund major road and bridge projects throughout the country.
If Congress can avoid these temptations, monumental economic growth is on the horizon.
The reduced corporate tax rate has made our country more globally competitive and many companies are now choosing to stay in the United States rather than take cover in tax havens like Bermuda and Ireland. Federal Reserve Chairman Jerome Powell recently told the House Financial Services Committee that the economic outlook remains strong.
Small business optimism is at one of its all-time highs, and last year wages grew at the fastest pace since 2009, a trend expected to continue this year thanks to tax reform.
The long-awaited American pay raise has made a dramatic entrance. Hopefully, Congress lets it stay.
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Personally, I’m not seeing much of a difference myself, but I’m in Maryland, and they tie their state tax system into the federal in such a way that, what the Feds giveth, Maryland just might be taking away.
The failed media can make up all the fake polls they want. The consumer confidence, and the jobless numbers, prove the lie in the media polling data.
wow! tHIS MAKE THE dUMBrats SO SAD, SO UPSET, THAT THEY ARE ALL SOILING THIER PANTS!
I wants my Trump Phone!
For us, the withholding hasn’t been fully adjusted - at least based upon the most recent notices.
It’s actually Tax RATE Cuts.
More Taxes will be collected including Income Taxes, Sales Taxes and Corporate Taxes throughout the Supply Chain.
You know what they say, we’ll make it up in Volume. LOL
The measly $25/mo fed tax cut we got can’t come anywhere close to making up the $1000 property tax increase, or the health insurance and meds increase, or the utilities increase or the grocery purchase increase or ...
“... by nearly doubling the standard deductionits now $12,000 for individuals and $24,000 for married couplesthe law widened the zero tax bracket.”
On paper this was an increase of $8800.00 in deductions for my wife and me. Alas, my joy was short lived...they eliminated the personal deductions, $8200.00 for wife and me. End result: reduction of just $600.00 in taxable income - better than nothing I guess.
Oh yeah. The tax cuts are not large, but at least it’s a start.
I object to the politically correct “tax reform” b/s terminology used to obfuscate the fact that TAX CUTS, even small ones, make such a BIG, positive difference in our economy and lives.
This is feel good bullshit propaganda.
I work for a huge multinational and haven’t seen a dime in bonuses, but my tax liability has increased big time.
Plus all of the imbeciles that don’t know how to itemize or take advantage of the same deductions that up until last year were available to individuals as well as corporations are going to see their taxes go up when the rates expire for Individuals (but not Corporations).
Cohn and Mnuchin fully funded Social security and Medicaid forever, just need to keep growing the population with non-white Goyim.
Brilliant actually, makes Gruber and Goebbels look like pikers.
Now, if Congress is sincere about individual tax reform, they’ll go further, by extending the 12% rate to the SS withholding cap, then the 25% rate to $1,000,000, then a 33% rate thereafter, while making the SALT cap more generous — 1/2 * (income + sales + property), IMO. The preferences from other folks may vary, of course.
Then, lower the corporate rate to 15%, but subject them to the same 1/2-SALT rule (they now have the same SALT we used to have).
But Congress is most insincere, so I don’t actually expect something like this to happen.*
*In reality, they could save some endangered GOP seats if they just made 1/2-SALT or some other version of SALT-lite, for individuals and corporations, retro-active to Jan. 1, but if I held my breath, I would meet Jesus before anything happened.
Pelosi & Schumer still cannot connect the dots—— Many of those people getting bonuses & raises weekly in their net pay have voted Democrat for years. Not all the higher paychecks are being handed out to Republican voters.
Imagine if the Federal Government only concerned themselves with the responsibilities laid out by our Founding Fathers in the Foundation of our Republic, the Constitution of the United States of America.
The Federal Budget wouldn’t break One Trillion a Year with most of that earmarked for National Defense.
The Federal Budget wouldnt break One Trillion a Year with most of that earmarked for National Defense.
That's right - about 80% of the $4 trillion feds is unconstitutional and should be dismantled. Imagine if we the people through our states and federal representatives DEMANDED that such happen. IMO, THAT IS OUR MISSION - restoring our free constitutional republic.
Sampling of what needs to go:
Department of Health and Human Services ($1 TRILLION budget!!!)
Department of Energy
Department of Education
Department of Labor
Department of Agriculture
Department of Commerce
Department of Housing and Urban Development
Department of Transportation
All of the unconstitutional Federal Administrative Agencies including
SBA (Small Business Administration)
We need to improve our slogan to something like this:
MAGA by RESTORING OUR FREE CONSTITUTIONAL REPUBLIC.
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