In late December, the House and Senate passed the most sweeping reform of our tax code since President Reagan. Over the past 30 years, technological advances have transformed our economy in unforeseen ways, leaving our tax code out of date and out of sync with the world. Now, we have a tax system that works in a 21st century economy, lets Americans keep more of their hard-earned dollars, and gives companies incentives to create and keep jobs right here at home.
Less than two weeks after taking effect, Americans are already starting to see the benefits. One company has already cancelled plans to move its headquarters overseas, due to tax reform. Many North Carolinians are starting to feel the benefit, too. Charlotte Pipe and Foundry has announced its 1,400 employees will receive a $1,000 bonus, and American Airlines is awarding $130 million in bonuses to all non-officer employees, 11,000 of whom are based in North Carolina.
Bank of America, headquartered in Charlotte, is giving 145,000 employees a $1,000 bonus. BB&T, headquartered in Winston-Salem, has announced it is raising its minimum wage to $15, and awarding $1,200 bonuses to many of its 27,000 employees. And Old Dominion Freight Line, headquartered in Thomasville, announced bonuses to all 22,000 employees. This is real money going into the bank accounts of real people.
Employee bonuses are just the start. The IRS recently released updated withholding tables and asked that employers implement them by February 15. According to Treasury Secretary Steven Mnuchin, 90 percent of workers will see more money in their paycheck once the new withholding tables are implemented. Starting next year, the vast majority of Americans will have an easier time filing their taxes. And the standard deduction will nearly double, which means almost 95 percent of Americans will no longer need to itemize their taxes.
The truth is, this money was yours to begin with, not Washington’s. This is real money going back into the pockets of hardworking Americans like yourself, many of whom have been living paycheck to paycheck. You are the best judge of what to do with the money you’ve earned. Thanks to tax reform, we won’t be surprised when you start to see more of your money back in your paycheck. You shouldn’t be either.
Burr and Tillis, both Republicans, represent North Carolina in the U.S. Senate.