According to a Reuters/Ipsos poll released on January 29, two percent of U.S. adults said they received a raise, bonus or other additional benefits due to the tax law enacted a month ago. The Reuters/Ipsos online poll of over 5,200 U.S. adults was conducted Jan. 12 through 23 and offers a look into public opinions of the tax reform. The poll provided information such as which class the participants thought the tax reform would benefit the most, if the participants expected to pay more or less, if the participants tried to consult with a tax professional, if the participants expect to itemize deductions, and if the tax law would change the participant’s interest in voting.
The full economic impact of the law will not be known for some time since the tax reform begins with 2018 income tax returns, which won’t be filed until 2019. President Donald Trump and House Speaker Paul Ryan assured the tax bill’s benefits would become evident in February when employee net paychecks increase after the IRS tax withholding tables were updated for new tax rates. Employees may be advised by their employer to complete an updated Form W-4 to ensure proper withholding.
While the Internal Revenue Service implements the law, Republicans in the U.S. Congress have been praising businesses for announcing wage and benefit increases in response to the tax plan. As of January 26, 40 companies on the S&P 500 have publicly announced wage increases, bonuses, or other special investments based on the lower tax rate and more may follow suit, according to CNBC.