A new report from the Tax Foundation tries to break down the question people want to know about the new republican tax plan; Will my family get a tax cut?
They put together some helpful charts:
We calculated the 2018 taxes of eight example taxpayers. Here’s who get’s a tax cut under the Tax Cuts and Jobs Act: https://t.co/OWt2LKTyDt @aelsibaie #TaxReform pic.twitter.com/V1GQ5MEnyC
— Tax Foundation (@taxfoundation) December 20, 2017
The foundation says each type of family it scored had realistic characteristics so it could show how the bill’s individual income tax provisions would impact various types of families with different incomes.
For example, a single individual who earns $30,000 with no children currently pays $4,331 in taxes. Under the revised tax plan, this individual would see her taxes decline by 9 percent and would pay $3,953. After taxes, this individual would see income rise by 1.26 percent.
A single individual earning a higher salary of $75,000 with no children will see his taxes reduced by 11 percent and after-tax income would grow by 2.37 percent. Under current law, this individual pays $16,104 in taxes, which would be reduced to $14,327 under the newly amended tax bill.Another single individual with two children and earning $52,000 will see a 36 percent reduction in taxes and a 3.64 increase in after-tax income. This individual would pay $5,198 currently, but would pay $3,306 under the Tax Cuts and Jobs Act.
A family with two children earning a single income of $85,000 would save 20 percent on their tax liability, seeing their taxes decline from $11,035 to $8,782.
Another family with two children earning two salaries totaling a combined $165,000 will see their taxes decline by 8 percent and their after-tax incomes would rise by 1.35 percent.
A high-earning married couple with two children earning $2 million who have a $2.5 million home will see their taxes decline by 3 percent and their after-tax income would rise by 0.95 percent.
“All of our sample filers receive a tax cut, but the size of that reduction varies,” the analysis explains. “The significantly higher standard deduction, combined with lower marginal rates and a more generous (and more broadly available) child tax credit, drives the reductions in tax liability for low- and middle- income filers.”