President Donald Trump and Republican leaders are celebrating what they're calling the largest tax cut in American history.
Independent studies find that most taxpayers will save anywhere from less than $100 to thousands of dollars next year, depending on their income.
Metairie CPA Gerry Schreiber agrees.
"The immediate effect is a reduction in the individual income tax that most people will be paying," Schreiber said.
Here a few examples:
- According to the independent, non-partisan Tax Foundation, if you're single, making $30,000 a year with no kids and taking the standard deduction, right now you're paying about $4300 in federal taxes. That number would drop to about $3900 under the revised tax code. That's a savings of about 9-percent.
- If you're single making $52,000 with two kids, taking the standard deduction, your tax bill would go from $5200 to $3300. That's a savings of about 36-percent.
- If you're married, making $85,000 with two kids, taking the standard deduction your taxes would go from $11,000 to $8800. That's a savings of about 20-percent.
But, the reductions for individuals and families expire in 2027.
"The way the law is written right now, there is a sunset provision," Schreiber said. "Whether we make it that far or not, we don't know."
Here are some other things to consider:
The Standard Deduction doubles to $12,000 for single filers and $24,000 for married couples filing jointly.
The increase in the standard deduction comes at a cost.
Starting in 2018, the tax overhaul repeals personal exemptions which are valued at about $4,000 per taxpayer, spouse and dependent in 2017.
Also of note for families, the Child Tax Credit will double to $2,000 per child under the plan.