News Release

OPM Encourages Federal Agencies to Quickly Implement New Federal Tax Rate Withholding

Washington, D.C.-- On May 28, President George W. Bush signed the Jobs and Growth Tax Relief Reconciliation Act of 2003, which will bring tax relief to 136 million American taxpayers. Included in that number are more than two million federal civilian employees.

“As the nation’s single-largest employer, it is imperative that the federal government lead the way in implementing the tax changes as prescribed by the IRS in an expeditious manner,” said U.S. Office of Personnel Management Director Kay Coles James. “I am confident these changes will be successfully implemented without delay, quickly returning taxpayer dollars to the citizens who earned the money.”

The Act provides for decreases in federal tax rate withholding brackets retroactive to January 2003, with most federal civilian employees seeing an increase in take-home pay as soon as possible.

“I am very proud of the work the President has done on behalf of the American people,” said Director James. “Economic initiatives, like the tax relief he is giving to millions of people, strengthen the economy and continue the prosperity this great nation enjoys, prosperity that is the envy of the world. Fundamentally, Americans know best how to spend their hard-earned dollars and should be given the maximum opportunity to do so.”

In order to help those implementing the Act, the Internal Revenue Service has published Early Release Copies of New Income Tax Withholding Tables, which are available on the IRS web site at www.irs.gov/pub/irs-pdf/n1036.pdf. The 2003 biweekly income tax withholding tables also will be available in the new future. The IRS does not expect to mail printed copies of the new tax tables in June.

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OPM oversees the federal work force and provides the American public with up-to-date employment information. OPM also supports U.S. agencies with personnel services and policy leadership including staffing tools, guidance on labor-management relations and programs to improve work force performance.

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