After months of negative press over the prophesied ill effects of tax reform, the liberal media has come to admit the greatest benefit of all from tax reform: rising wages. The AP wrote today that despite the tax bill being “contentious,” workers are starting to take home more pay. Big corporations across America have announced wage increases and bonuses as a direct result of the cut in their corporate tax rates. While some have called these benefits for employees “crumbs,” the numbers are really beginning to add up. The AP writes:
Treasury Secretary Steven Mnuchin has estimated that the new rules will mean more take-home pay for about 90 percent of American workers.
How much extra cash? It depends on several factors, such as workers’ income, how often they are paid and the number of withholdings allowances they claim on their IRS Form W-4 with their employer.
Those whose employers were quick to make the change welcomed the extra money — anywhere from a few dollars to a few hundred dollars.
Wayne Love, who works in managed care in Spring Hill, Florida, got an extra $200 in his paycheck last week, which he said will help offset a $300 increase in the cost of his health insurance.
“I have heard time and again that the middle class is getting crumbs, but I’ll take it!” Love said by email.
Julia Ketchum, a secretary at a public high school in Lancaster, Pennsylvania, said she was pleasantly surprised her pay went up $1.50 a week. She didn’t think her pay would go up at all, let alone this soon. That adds up to $78 a year, which she said will more than cover her Costco membership for the year.
And Todd Anderson of Texas and his fiance, who are both educators, got an extra $200 in their paychecks combined that they plan to use to cover the costs of a second baby on its way.
According to the nonpartisan Tax Policy Center, a middle-income household would on average get a tax cut of $930 this year, lifting their after-tax income by about 1.6 percent.
Read more here.
Treasury Secretary Steven Mnuchin: Tax Reform Has Been A Game Changer For US Businesses | CNBC
E.J. Smith - Your Survival Guy
Latest posts by E.J. Smith - Your Survival Guy (see all)
- Survive and Thrive October 2022: Sink Your Teeth into These Bond Yields - October 1, 2022
- What You Start to See Is a Death Spiral - September 30, 2022
- Why Your State Doesn’t Need an Income Tax - September 30, 2022
- Biden, Harris, Obama and Democracy? - September 30, 2022
- Get Off the Investment Roller Coaster: Have a Plan - September 29, 2022