More American Women have chance to Save Invest & Improve their Financial Security.
By Hadley Heath
Texas Insider Report: WASHINGTON D.C. Although
the Tax Cuts & Jobs Act (TCJA) doesnt affect tax returns filed for 2017 Americans are already celebrating about the new law.
Independent Womens Voice asked women to share on social media how tax reform had affected them and many women did. Their stories ought to be told.
First there were the increased paychecks for people like Rebecca Brianna Laura and Debra.
- Rebecca told us she had reservations about President Trump but was nevertheless excited that tax reform will benefit her family significantly."
- Brianna said shes getting $234 more in each paycheck for a total of $2808 per year.
- Debra told us shes keeping $300 more of her money each paycheck for a total of $3600 per year.
- Laura estimates her annual savings to be $4500!
Several parents tweeted how they planned to spend these new resources on their children:
new basketball shoes ballet lessons healthier food new appliances and defraying the cost of
medical bills car payments gasoline and daycare. One mom even tweeted she could now
afford airfare to visit her 20-year-old son who is stationed in a faraway state with the U.S. Army.
Why did so many American workers see a boost to their paychecks?
- The Tax Cuts and Job Act cut tax rates for every income bracket.
- Before the TCJA Americans filed in one of seven tax rates of 10 15 25 28 33 35 and 39.6.
- Now the seven income tax rates have been lowered to 10 12 22 24 32 35 and 37 respectively.
- The law also adjusts the income thresholds for each bracket resulting in lower income tax liabilities for people at nearly every income level.
Secondly we heard a lot about bonuses a result of the corporate tax cut. Just ask Ann SA or Audrey:
Ann is a single mom.
SA is also a mom who plans to use her $1000 bonus as a re-enrollment deposit for her daughters school where she can continue to overcome dyscalculia and dyslexia.
Audrey says her bonus comes in addition to a raise increased 401K matching and a lower tax rate paycheck to paycheck.
These arent cherry-picked stories and they reflect a huge trend:
More than 500 employers have offered bonuses to 4 million American workers as a direct result of tax reform. The federal corporate rate has been slashed from 35 (the highest in the world) to 21 allowing corporations to share massive new resources with their workforce and reinvest in their strength and growth.
Even on top of all this good news there are some benefits of tax reform that women and their families may not fully enjoy until about a year from now when 2018 tax returns are due.
For one: Although
the TCJA eliminates personal exemptions it doubles the standard deduction.
This change will have two effects: This will
- Make filing taxes simpler for filers who will change from itemized deductions to the standard deduction. And it will
- Shield more income from taxation by reducing taxable income for many filers.
Child Tax Credit will also double from $1000 to $2000 per child $1400 of which is refundable. Theres a new $500 credit available as well for non-child dependents which is likely to help the parents of many college-aged children.
Many families who own and operate small businesses (as pass-through" entities where income passes through to them as individuals) will be able to deduct 20 of their qualified business income.
Putting all this money back into the hands of American families wont just improve lives in the short run. Sure its great to be able to go on vacation or purchase a new refrigerator. But many of the downstream effects of the new tax law will have long-term effects:
- Analysts estimate it will lead to the creation of 339000 more jobs and 1.5 higher wages.
This means more Americans both men and women will have more opportunities to save invest and improve their financial security.
Thats something to celebrate this year.
Hadley Heath is Director of Policy at the Independent Womens Forum. She appears frequently in radio & TV outlets across the country including Fox Business Cavuto on Business The John Stossel Show Fox News The Sean Hannity Show and PBSs To the Contrary. Her work has also been featured in the Wall Street Journal Forbes POLITICO Roll Call Real Clear Policy The Daily Caller and Townhall.com.
