Coming soon: bigger paychecks. Today, the Department of Treasury released new withholding tables following enactment of the Tax Cuts and Jobs Act. These updated tables will take effect in February, which means that in just a few weeks, Americans across the country will start to see bigger paychecks.
“Many employees will begin to see increases in their paychecks to reflect the new law in February,” according to the IRS.
“We estimate that 90 percent of wage earners will experience an increase in their take home pay,” Secretary Mnuchin explained.
This is great news. The vast majority of hardworking people in the United States live paycheck-to-paycheck. For middle-income Americans, those families struggling just to make ends meet, this will make their lives easier. And because the new tax law nearly doubled the standard deduction, you will not only earn more, but be able to keep more of what you earn.
In just the 20 days since President Trump signed the Tax Cuts and Jobs Act, we’ve seen countless businesses take steps to reward their employees with raises and bonuses. And earlier this week, U.S.-based company Assurant reversed its plans to move its headquarters to Bermuda.
The reality is that this new tax code is working. Americans are already reaping the benefits, and soon they will see bigger paychecks arrive in the mail. And you can take that to the bank.