A month ago, Rep. Pelosi screeched that the Republican tax cut bill would bring about “Armageddon”.
The IRS has released the modified withholding schedules for 2018, as per the recently passed Republican tax bill. Conclusion: rates were cut across the board except for the super rich. The “Armageddon” apparently won’t reach her staff. They, like most everyone else, will experience more take home pay. It’ll also show in their end-of-the-year tax filling.
Take for instance Patti Ross, a Pelosi policy advisor. I don’t know of her personal background other than she is receiving a $69,750 annual salary. Plugging in the same numbers for the 2017 and 2018 tax years – “Head of Household”, $5,000 in deductions, 2 kids, and no other adjustments for retirement investments, etc. – her tax liability falls from $7,565 in 2017 to $4,938, a savings of $2,627. Her effective tax rate declines from 10.8% in 2017 to 7.1% in 2018.
Mrs. Pelosi has to explain to her staff how a fatter paycheck is “Armageddon”.
RogerG