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Calculate How the GOP Tax Bill Will Impact You

Lifehacker logo Lifehacker 12/3/2017 Emily Price

a close up of a calculator: Image: Pexels© Provided by Univision Interactive Media, Inc. Image: Pexels

In the early hours of Saturday morning, the Senate passed a new tax bill, the biggest rewrite of the individual and corporate tax code in the United States in 30 years and one that offers huge tax cuts to banks, developers, and the oil industry, amongst other corporate interests.

How that tax code will potentially impact you as an individual depends a good bit on how much you make.

The Washington Post created an online calculator to give you an idea of how you might be affected should the plan go into effect. You can check it out here.

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.

a screenshot of a cell phone: Image: Washington Post© Provided by Univision Interactive Media, Inc. Image: Washington Post

People who itemize their deductions are likely to pay more in taxes than they do now. People in high-tax states are especially likely to end up paying more under the plan.

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.

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