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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

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(Photo Credit: MicroStockHub / iStock)

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(146)
  • Helen
    02/02/2018
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    That tax cut bill added $14 to my paycheck. What a joke.

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  • Truly
    02/02/2018
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    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.

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  • Laura
    02/03/2018
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    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.

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  • Fritz
    02/03/2018
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    Great the laborers get a few bucks & the corporations get millions. Plus your taxes are going up.

    Like (53)
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  • Jim2423
    02/03/2018
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    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 ☺️

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  • Trina
    02/03/2018
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    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)
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  • Dan
    02/03/2018
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    Absent the tax giveaway to the ultra-rich, wages actually declined. This tax cut was fakery.

    Like (41)
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  • J. scott
    02/03/2018
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    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.

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  • Mancos
    02/02/2018
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    Unfortunately, the Federal Government leadership has lied and/or omitted information so frequently that I no longer believe much of what is said.

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  • Richard
    02/03/2018
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    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)
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  • Ian
    02/03/2018
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    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)
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  • Kristen
    02/03/2018
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    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.

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  • Vince
    02/03/2018
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    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)
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  • Zach
    02/03/2018
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    This is also known as “Smoke and Mirrors: How the Wealthy and Powerful Rules the Majority With Their Consent.”

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  • Walter
    02/02/2018
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    Business is improving. Wages are improving. The process of recovery from years of Democratic mismanagement has only just begun.

    Like (17)
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  • Marc
    02/02/2018
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    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!!

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  • Gary
    02/03/2018
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    I love coming on here and reading all the negative comments whenever something positive the rest of the country is celebrating particularly whenever President Trump is involved. I imagine that when companies were firing full time workers and hiring them back as part time employees because of Obamacare, these same commentators were happy that these people would have more leisure time.

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  • JasonJ
    02/03/2018
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    Might be important to add that minimum wage workers in 18 states received increases.

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  • I.Got.an.Idea...
    02/03/2018
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    LMAO.....🤣. You kids can spin anything.... and people buy it. Take away the skimpy little bonuses, and Nobody’s wages are really going up. How are you going to spin the massive depression that is on its way?? BTW, I like how this refers to wage growth in the last 8 years and not, say 16 or so.....this is propaganda.......

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  • Dea
    02/03/2018
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    Twenty cities and eighteen states raised their minimum wage in January. Why isn't this mentioned as a factor.

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