Calculate How the GOP Tax Bill Will Affect You
Early Saturday morning, the Senate passed a new tax bill, the largest rewriting of the tax code for individuals and businesses in the United States in 30 years, with significant tax cuts for banks, developers and the oil industry. among other corporate interests.
How this tax code will potentially affect you as a person depends a lot on how much you make.
The Washington Post created an online calculator to give you an idea of how you might be hurt if the plan goes into effect. You can check it out here .
For example, a household with an income of $ 100,000 next year will receive an average tax cut of $ 1,430. In contrast, a family with an income of over $ 3.6 million will receive an average tax cut of $ 85,640, and a family with an income of $ 40,000 will receive an average tax cut of $ 330.
People who list their deductions are likely to pay more taxes than they do now. People in high tax states are especially prone to pay more according to the plan.
These numbers are valid until 2025, when the tax credits for individuals and families expire. Then many low- and middle-income households will start to raise taxes.
The reason for this is that the bill does not take inflation into account, so while a low-income person may earn the same in 2025 as they do now, they may end up in a higher tax tier as they are technically making “more” money.