At the end of Tax Day 2018, Republicans are hoping that Americans paid attention to how the Tax Cut and Jobs Act – the largest overhaul of the U.S. tax code since President Ronald Reagan – increased overall take-home pay.
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That’s because in June or July, GOP lawmakers, working with President Donald Trump, are eyeing a second round of tax cuts that would likely make permanent a number of provisions that are set to expire in less than a decade.
“People need to focus on what’s in their paychecks, and when we have the debate on making the tax cuts permanent, we will have another opportunity to say, ‘Look at this, look how much your pay increased,’ and focus on the benefits of tax reform,” Americans for Tax Reform President Grover Norquist told FOX Business’ Trish Regan on Tuesday.
The possible addendum to the massive, $1.5 trillion cuts included in the 2017 tax overhaul that Trump signed in December is still in the early stages, the White House has said. That bill permanently lowered the corporate rate to 21% from 35%, but only lowered individual taxes until 2025.
he Council of Economic Advisers
A new tax bill, according to National Economic Council Director Larry Kudlow, would likely focus on lowering the corporate tax rate if international competitors did so; encouraging Americans to save more money, earlier in life; boosting paychecks; and ensuring that pensions are safe for the long term.
In the wake of implementation of the tax overhaul, more than 430 companies have announced pay raises, bonuses or 401(k) hikes, benefiting more than 4 million Americans, according to the White House.
“Now that we have Republicans’ tax reform, 90% of Americans have lower taxes, less money being taken out of their pay,” Norquist said. “But not everybody sees that because a lot of people have direct deposit.” Under the first round, the Council of Economic Advisers estimates that annual income for American households will increase by $4,000 on average. Workers began to see a bump in their paychecks last month.