Will the New York Times or Larry Summers be able to handle the truth that reduced taxes will be showing up in paychecks soon? In the WSJ’s Best of the Web, James Freeman outlines what he calls the February Surprise.
In some ways it already has, as business enthusiasm for the Trump agenda of reduced taxes and regulation has been a boon to the economy. Today the Federal Reserve Bank of Atlanta issued its latest forecast for GDP growth in the final three months of this year. The Atlanta Fed is expecting a healthy 3.3% increase. This would make three quarters in a row of growth of 3% or more, which hasn’t happened in more than a decade.
Can Democrats persuade voters to ignore this hopeful news?
House Minority Leader Nancy Pelosi elaborated on the anti-reform tax-cut argument, calling the bill “brazen theft and “moral obscenity”. According to ABC News:
“Republicans will vote to let the wealthiest one percent steal the future of the middle class in America,” Pelosi, D-Calif., stated prior to the vote. “The GOP tax bill will go down as one of the most scandalous, obscene acts of plutocracy ever.”
Most workers in the U.S. are subject to withholding, and employers are already beginning to follow IRS guidelines. The initial withholding guidance (Notice 1036) in January will begin to reflect the new legislation, which will allow taxpayers to begin seeing the benefits of the change as early as February.