Calculate How the GOP Tax Bill Will Impact You
In the early hours of Saturday morning, the Senate passed a new
How that tax code will potentially impact you as an individual depends a good bit on how much you make.
A household with an income of $100,000, for instance, would see an average tax cut of $1,430 next year. In contrast, a household making over $3.6 million would get an average tax cut of $85,640, and a household making $40,000 would see an average tax cut of $330.
People who itemize their deductions are likely to pay more in
Those numbers are good until 2025, when tax breaks for individuals and families will expire. Then, many low and middle-income households will start to see their taxes go up.
The reason for that is that the bill doesn't consider inflation, so while a low-income person might be making what equates to the same value of money in 2025 as they do now, they may find themselves in a higher tax bracket since they're technically making "more" money.