Feb 15, 2018: Taxpayers should see tax cuts in February paychecks
UNITED STATES - U.S. Treasury Secretary Steven Mnuchin expects taxpayers to begin receiving bigger paychecks by mid February as the result of December’s Republican-driven tax overhaul. The November mid-term election results are likely to reflect voters’ opinions about the US $1.5 trillion tax package.
Mnuchin said the new withholding tables published by the Internal Revenue Service should allow employers time to adjust workers’ paychecks in response to the significant changes in tax law.
The massive Republican tax legislation was signed into law in Dec 2017 by President Donald Trump and came into effect on Jan 1. The package is controversial because it provides generous tax cuts for corporations and the wealthiest Americans, and only modest reductions for everyone else. It also limits some popular deductions, such as the federal deduction for state income, property and sales taxes, and eliminates other deductions. Its supporters say it will pay for itself with the boost it gives to corporations, but opponents argue that the package means massive debt for the country, offset in part by the savaging of social programs.
President Donald Trump promised when the legislation passed the Republican-dominated Congress in December that it “will deliver more jobs, higher wages and massive tax relief for American families and for American companies.”
If he is right, Republicans might retain control of Congress in November. If he is wrong, he will have to contend with a Democrat majority in the next congressional term.