Like Countable?

Install the App
TRY NOW

Wage Growth Fastest in 8 Years As Tax Reform Takes Effect

by Countable | 2.2.18

The Labor Department released its January jobs report Friday, revealing that American workers saw their wages rise at the fastest pace in 8 years as changes to the tax code brought by the Tax Cuts and Jobs Act began to take effect.

The growth in wages was driven in part by a tight labor market, as the unemployment rate remained at 4.1 percent — the lowest level since 2000 — with the economy adding 200,000 jobs. Hiring was strongest in the construction, service, healthcare, and manufacturing sectors.

Businesses have started implementing the IRS’ new tax withholding guidelines, and those that haven’t already done so will need to make the switch by February 15. The guidelines take into account the lower tax rates and higher standard deduction included in the Tax Cuts and Jobs Act. The Treasury Department estimated that 90 percent of American workers will see their take home pay increase because of the new tax law.

Are you seeing your take home pay increase because of the new tax law? Hit Take Action to tell your reps, and share your thoughts on the economic news below!

— Eric Revell

RELATED READING

(Photo Credit: MicroStockHub / iStock)

Countable

Written by Countable

Leave a comment
(146)
  • Gerald
    02/03/2018
    ···

    ExxonMobil yesterday reported over five billion dollars additional profit this quarter tied to the tax cut. I noticed gas prices went up today. Giving corporations trillions of dollar reduction without budget cuts is like writing checks knowing they will bounce. We will never see this money in American homes and it’s gone forever. The great tax break for the middle class is a hoax. I hope enough people realize it to throw these corporate whores out in 2018. We’ll see.

    Like (156)
    Follow
    Share
  • Robert
    02/03/2018
    ···

    This growth has been going on for nine years since President Obama took on the great recession. President Trump has done shit for the American people

    Like (127)
    Follow
    Share
  • Helen
    02/02/2018
    ···

    That tax cut bill added $14 to my paycheck. What a joke.

    Like (113)
    Follow
    Share
  • Truly
    02/02/2018
    ···

    This is a very temporary effect. When the new wears off, companies will be back to their old ways. This boost is just to help justify the tax break for companies. The only way the economy will get a long term boost is to increase minimum wage and tax individuals at a fair rate.

    Like (93)
    Follow
    Share
  • Laura
    02/03/2018
    ···

    Gas prices have gone up since trump has been in office, so what are you going to do about that? Trickle down has never worked and it’s not going to work this time either. Get ready for another recession in about 2 years.

    Like (78)
    Follow
    Share
  • Fritz
    02/03/2018
    ···

    Great the laborers get a few bucks & the corporations get millions. Plus your taxes are going up.

    Like (53)
    Follow
    Share
  • Jim2423
    02/03/2018
    ···

    The new tax bill gained me $1.40 a month and my insurance went up $40 a month. WOW how can I thank you so much ☺️

    Like (51)
    Follow
    Share
  • Trina
    02/03/2018
    ···

    Considering the additional trillions being added to our deficit I call foul on a $14 weekly paycheck increase. I can’t even buy tires for my car. Let’s talk instead about the lack of professionals we are going to have in our work force due to trump’s poor immigration policies

    Like (44)
    Follow
    Share
  • Dan
    02/03/2018
    ···

    Absent the tax giveaway to the ultra-rich, wages actually declined. This tax cut was fakery.

    Like (41)
    Follow
    Share
  • Justin
    02/03/2018
    ···

    If you like the $14 in your paycheck wait till you see what it will do to your health insurance premiums ! But wait there’s more your grandchildren will still be paying off the $1.5 trillion until there dead 💀

    Like (35)
    Follow
    Share
  • Mancos
    02/02/2018
    ···

    Unfortunately, the Federal Government leadership has lied and/or omitted information so frequently that I no longer believe much of what is said.

    Like (29)
    Follow
    Share
  • J. scott
    02/03/2018
    ···

    Don’t fall for it people just hype to get us to believe the Tax Bill is working - we get crumbs, a few dollars in our paycheck, the price is to keep quiet while our country and our treasury is raped. Meanwhile, corporations get Billions and keep it. There is no trickle down or we’d all be rich by now - we’ve been doing this since Ron Reagan and nothing has changed. Almost 40 years and nearly a half century.

    Like (29)
    Follow
    Share
  • Richard
    02/03/2018
    ···

    Pres Bush took office in 2001, inheriting a $236 billion budget surplus from Bill Clinton, gave it back to the people. About $500 per person. Poof, no surplus. 2 wars later and a major economic downturn, all financed by deficit spending, corporations get a major tax break - great for shareholders while the government goes deeper and deeper into debt. Anyone see a trend here?

    Like (22)
    Follow
    Share
  • Ian
    02/03/2018
    ···

    Some may complain that the new tax plan only gives 10ish dollars per pay-check, but isn’t that 10 more dollars than you had a month ago?

    Like (20)
    Follow
    Share
  • Zach
    02/03/2018
    ···

    This is also known as “Smoke and Mirrors: How the Wealthy and Powerful Rules the Majority With Their Consent.”

    Like (18)
    Follow
    Share
  • Kristen
    02/03/2018
    ···

    Oh bullshit. If Countable is going to start swallowing Nazi GOP jizz, I will exit this platform. Shithole has his propaganda tools in Fox and Breitbart. Ditch the misleading crap or I will be gone.

    Like (18)
    Follow
    Share
  • Vince
    02/03/2018
    ···

    Leave it to people on Countable to complain about wage growth. Must be unhappy because it wasn't government mandated wage growth and that it happened due to the market. Lefties hate that.

    Like (18)
    Follow
    Share
  • Marc
    02/02/2018
    ···

    The stock market doesn’t like it when workers start to benefit because of the effect of the success that who they work for is good. And a good part of that success these companies have is directly on the back of their employees. But, the value needs to go to the shareholders not “workers”. WTF!!

    Like (17)
    Follow
    Share
  • Walter
    02/02/2018
    ···

    Business is improving. Wages are improving. The process of recovery from years of Democratic mismanagement has only just begun.

    Like (17)
    Follow
    Share
  • Janna
    02/03/2018
    ···

    The “Eight years of mismanagement by the Democrats?” Good. Lord. I guess I’ll never get over the fact that this country has such a SHORT-TERM memory loss. Was it not a Republican POTUS and his cohorts that gave us big tax cuts in the early part of this century? Can we try to go back just a few years and visit the gradual decline of job growth? Can we try real hard to remember that in 2008 the bottom dropped out and it was one of the worst economic recessions we’ve ever had? Good grief, it’s exhausting to deal with the fickleness of the American people. Today marked the 88th month of JOB GROWTH, the longest on record. Mark my words, the economy is going to tank again and with these trillion dollar tax cuts, it’s going to tank even faster this time around. People never stop to think how we’re going to pay for those tax cuts. Yesterday the CBO released a statement that the are going to possibly need to raise the debt ceiling because of the revenue ALREADY loss from the tax cuts.

    Like (15)
    Follow
    Share