Treasury watchdog finds no political pressure on tax analysis
Jan 14 2018
Mnuchin said that for modelling purposes, the plan assumes 2.9 percent annual USA growth, but "we do think we can get to three percent or higher".
Employers should start using the 2018 withholding tables as soon as possible, "but not later than February 15", the Internal Revenue Service said in a news release (IR-2018-05). Businesses are rewarding their employees, expanding their operations and making new investments as a direct result of the Tax Cuts and Jobs Act. In all, the new legislation has increased the standard deduction, done away with personal exemptions and trimmed individual income tax rates.
Lawmakers in blue states have been considering strategies to work around the federal tax overhaul's $10,000 cap for deductions on state and local taxes, or SALT, with some floating concepts that would allow taxpayers to make charitable donations to state funds, offsetting SALT.
"The IRS appreciates the help from the payroll community working with us on these important changes", said Acting IRS Commissioner David Kautter.
Mnuchin said the USA authorities, including the Federal Reserve, were studying the advantages and disadvantages of issuing digital dollars instead of hard cash, but "the Fed and we don't think there's any need for that at this point". "Our objective is not to have taxpayers over-withheld, so they owe money at the end of the year", Mnuchin said Thursday during the news conference. "Despite many false claims regarding the effects of our efforts, hardworking Americans are already seeing the immediate benefits of this new, pro-growth tax code". "And we're going to actively encourage and make sure that taxpayers understand how to go on to the calculator, once it's up and running".
To ensure an accurate calculation, taxpayers will have to enter their personal financial information into a calculator expected to be unveiled next month on the website IRS.gov.
In their letter, Wyden and Neal said the IRS lacks independent and nonpolitical leadership. They should continue to use the 2017 withholding tables until implementing the 2018 withholding tables. In a reflection of just how quickly the Treasury Department wants people to see the impact of tax reform on their paychecks, the IRS is coming out with the withholding tables even as it has not completed an update to the W-4.
He said new guidelines would provide an accurate picture for many.