Most taxpayers get a short-term break under GOP tax plan

Independent studies find that most taxpayers will save anywhere from less than $100 to thousands.

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.
 

© 2018 WWL-TV


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