Here's When People Will See The GOP Tax Cut In Their Paychecks

WASHINGTON, DC — When the Republicans passed a major tax bill in the 11th-hour in December, they promised a reduction in middle-class rates. But because the bill was rushed through, the IRS — not to mention professional tax preparers across the country — has struggled to work through the details on the policy. This means workers haven't yet see any change in their paychecks from the new plan, even though the bill has become law.

Before employees will see any change in their paychecks, employers need to receive new documents from the IRS explaining how much should be withheld in taxes. On Thursday, the Treasury Department announced it sent out the new information to employers, and that it expects workers to start seeing the new rates reflected in their paychecks by Feb. 15.

“With this guidance, most American workers will begin to see bigger paychecks. We estimate that 90 percent of wage earners will experience an increase in their take home pay,” Treasury Secretary Steve Mnuchin said in a statement. “The Administration’s monumental tax reform legislation continues to provide economic benefits for hard-working Americans. 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.”

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The new withholding tables sent to employers aim to be as accurate as possible to reduce the number 0f people who will either have to pay or be repaid when they file their taxes, the department said.

"The new withholding tables reflect the increase in the standard deduction, repeal of personal exemptions and changes in tax rates and brackets," the department said.

The tax law slashed the corporate tax rate permanently and cuts rates for individuals and families on a temporary basis. It also repeals Obamacare's individual mandate, which congressional analysts believe will increase the number of people who are uninsured and raise health care premiums. The mandate has long been one of the least popular parts of Obamacare because it means some people who forego health insurance must pay a tax penalty that can reach hundreds of dollars.

According to The New York Times, about 75 percent of Americans can expect a tax cut in 2018 from the tax bill. However, at the end of a decade, many families will experience a tax hike under the tax bill, according to analysts. Read more about the details of the tax bill.

The fundamentals of the tax bill include:

• Corporations get a massive permanent tax cut from 35 percent down to 21 percent.
• The top income tax rate is dropped from 39.6 percent to 37 percent, giving a large tax cut to wealthy people.
• Many individuals and families will see their tax rates fall at first, but these cuts expire before the 10-year horizon of the bill expire.
• The child tax credit is increased, giving many families an additional cut; this provision expires in 2026.
• Several larger personal deductions are cut, which will likely cause some families and individuals to pay higher rates overall, even in the short term.
• The Affordable Care Act insurance mandate is repealed, a move which the Congressional Budget Office thinks will raise premiums and cause millions more people to be uninsured in the coming years.

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