IRS rolls out new tax tables

Treasury 90% of wage earners will likely see higher take-home pay

As if it wasn't already clear that the IRS faces challenges in implementing the new GOP tax law, a new report by the agency's independent taxpayer advocate warns just how daunting a task the agency has on its hands.

Mr. Mnuchin pushed back on those concerns Thursday, saying the IRS usually issues its withholding tables every January, and the agency chose to wait until February to take into account the changes under the new tax system. "These tax cuts will ensure that American workers are able to keep more of their hard earned income and decide how to spend, invest or save it". In the meantime, employers and payroll service providers should continue to use the existing 2017 withholding tables and systems.

The guidelines are necessary for businesses to calculate how much to withhold in taxes from employees' paychecks beginning as soon as next month.

The patchwork system is part of a rushed transition the White House is trying to push through to allow as many Americans as possible to see bigger paychecks next month.

The announcement came as officials detailed guidelines concerning the implementation of the new tax rules, and it was met with criticism. Specifically, the withholding tables released today are created to work with the Forms W-4 that workers have already filed with their employers.

US House of Representatives Passes Bill Renewing FISA Surveillance Program
Trump's tweets on surveillance marked the second time this week that he appeared to veer from the administration's position. The White House's efforts to portray Donald Trump as a fully engaged, compos mentis president hit a speed bump on Thursday.

Companies have been awaiting details from the IRS since late last month, when lawmakers passed a sweeping tax overhaul that changes tax rates and brackets, increases the standard deduction and repeals personal exemptions. And that results in a refund when they file their tax returns.

Two congressional Democrats have expressed concern that the new tables would "systematically underwithhold income taxes during the 2018 tax year".

There are new tax credits while other mainstays - like the $4,050 personal exemption - are gone.

"Republicans are using brute force and speed to implement a law that will deliver a financial blow to hardworking Americans all across the country", Sen. President Donald Trump and the Republican architects of the tax plan have deflected criticism of the unpopular legislation, insisting at every turn that Americans will come to love the new law when they see their heftier paychecks next month - with less money withheld in anticipation of lower income taxes. If they determine they are paying too much or too little in taxes, based on the size of their family or other variables, they can direct their employer to make changes. Ron Wyden, the top Democrat on the Senate Finance Committee, said in a statement.

These tax changes are all scheduled to expire after 2025, though Republicans have said they want to make them permanent.

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