Finance / Politics

Tax Cut Map – How Much are People in Your Area Saving?

map tax cut saving

Protect Our Paychecks

Since Congress passed tax reform, American families have seen bigger paychecks and more opportunity. The map below shows how average households in your state and district will benefit. These benefits could be greater if made permanent or disappear if repealed. It’s time to protect our paychecks.

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Reprinted with permission from - The Heritage Foundation

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Brenda Conner
3 years ago

I think that the tax cuts that the President has made are wonderful. He is the best president that we have had in a long time,and l hope that he does completely away with nafda

Richard
3 years ago

Just for the hell of it I checked Nancy Pelosi’s District. Her constituents are only saving about $2400 a year. What crumbs! You’re right Nancy, let’s tax your constituents at a higher rate and get that money back. I’m sure they will eagerly dump your dumb ass when you come up for re-election..

Carolyn
3 years ago

If healthcare is not fixed it will end up as a wash.

Diana
3 years ago

I’m so glad that American workers are bringing home more money, but am very concerned by the constant discussions about cutting Social Security and Medicare. Who do you think built this country? I worked over thirty eight years and they want to reduce what I receive from the money I and my company put in for me? That’s just plain wrong. If I am wrong, please let me know as I don’t see anything in the new tax law that is going to benefit senior citizens.

Chris
3 years ago
Reply to  Diana

There is NO discussion of cutting Social Security or Medicare for current recipients. That is simply scare tactics of the Democrats. Any changes will be the earning rules to those who are now working.

Michael J. Izzo
3 years ago
Reply to  Diana

You want to see a Homelessness and healthcare atrocities, then take away Medicare !

Maria Rose
3 years ago

Amazing how these representatives downplay this because their rich constituents have to pay their fair share of taxes. I was paying between federal, state and city taxes about 35% of my gross income because I didn’t have those special deductions available that high-income earners had. They still have deductions available with the changes but they can’t take all the state and local taxes off like before to lower their tax liability. I feel the new tax law is fairer and should be permanent.

TheUglyTruth
3 years ago

It’s not a lot on average, some will do better some a little worse numbers. However, it’s better than NOTHING at all right?

Elliot G
3 years ago

Don’t believe all the numbers. Remember the values are averages. For someone like myself that is self employed with a few years left until full retirement, I will lose out on about 21,000 in state income tax deductions as well as thousands in portfolio management fees. I expect my annual taxes to increase by as much as $13,000. Those of us in high state income tax state (such as California), that are self employed but not incorporated will be getting screwed big time.

TheUglyTruth
3 years ago
Reply to  Elliot G

Do what I did. Move out of socialist California..

Elliot G
3 years ago
Reply to  TheUglyTruth

Would love to move from the People’s Republic of CA and San Francisco. Unfortunately my wife has older parents here (90’s) so she will not relocate. Guess I am stuck with the higher taxes. Last year between self employment taxes, state taxes, business taxes, medicare penalty, and for being a good investor another 4% penalty (to pay for ObamaCare), my overall tax payments without RE taxes was about 53%. That is the reason I will go semi-retired in 2019. Why bust my butt just to have it taken away. The less I make the less they get.

Jerry
3 years ago

I have not been able to itemize in decades, so this should work out for me. I really hope so. I am getting so tired of having to send so much money to the government every April. :-( I don’t know how people even manage to get money back from them!

James
3 years ago

Just crumbs huh? The tax and spend democrats said they will take those precious crumbs back if they’re re elected to the majority.

this is
3 years ago
Reply to  James

Let’s NOT make that happen comes mid-term elections!

CGA
3 years ago
Reply to  James

I vote we tax the senate and house DUMBocRATS at the 100% rate and see what it would be like for them to have their “crumbs” taken away. Then we can spend it on THE WALL.

Paul
3 years ago

What crumbs did the democrats give us???????????? after all that is what they are saying we are getting now

this is
3 years ago
Reply to  Paul

They gave us nothing, but still wanted to raise our taxes if they were in power to do so. They are nothing but money-hungry buzzards wanting to take from the poor to fill their own pockets before they leave office. It may be “crumbs” to the Democrats (whiners) but to us, it is money we can use.

Mike
3 years ago

it is crumbs to millionaire politicians but to the hard working average Joe out there it is real money. These tax and spend democraps will never understand it.

paul
3 years ago
Reply to  Mike

Right on Mike

Kim
3 years ago

I’m glad to see that most American workers are taking home more income as a result of tax reform. I have a question for accountants: After 2018 income taxes are filed next year, will there be a greater benefit when the higher standard deduction kicks in? What effect will the loss of itemized deductions have on take-home pay?
I remember hearing Paul Ryan say that, even with not being able to claim itemized deductions, most of us will still be ahead of the game; that the new standard deduction was formulated to provide more tax relief than just making up for the loss of itemized deductions.

Donald Tucker
3 years ago
Reply to  Kim

I think about 70% of returns filed are not itemized. In my case, the itemized items come to more that the standard deduction; but not by a heck of a lot. Doubling the standard deduction is a gain for me. And it will be a lot simpler, easier, and cheaper to complete the tax return. But the biggest issue is, regardless, what amount of your work should you be entitled to keep and what amount should go toward all the progressive social experiments from the past hundred years. It’s your money not the government’s. Governments don’t create wealth and their method of redistribution is not fair.

PaulE
3 years ago
Reply to  Kim

Hi Kim,

Since we have a number of CPA’s that post here, I think you’ll get some replies to your question. However, I think you won’t necessarily like the responses, if they are being forthright with you. Your question is unfortunately overly broad in nature. No tax reform package ever passed has been a one size fits all in terms of across the board benefits. We simply don’t live in a cookie-cutter society where everyone’s circumstances are identical.

The answer to your question depends on a number of variables such as what tax bracket you were in before, where you live, whether you own a home or not, whether you own a business or not, number of dependents, if any and their ages, what is your income comprised of, etc. etc. So you’re likely get get the answer “It depends”. That isn’t them dodging the question, but rather them admitting the complexity of determining the answer based on which variables apply to you.

As to Paul Ryan and what he says, I gave up listening to anything he says back in 2008. When he flipped on everything he had said and supposedly stood for upon becoming John McCain’s running mate. His credibility went right out the window. These days he speaks in such vague generalities, that anything he talks about is virtually meaningless and you shouldn’t be depending on what he says. Always try to read the Congressional legislation that they put up on-line before it is voted on to see what is really in the bills. I read the tax reform legislation both before and after it was passed to understand what they were really doing. I would say that most people, probably 75 to 80 percent of the overall country, will end up benefiting from various aspects of the legislation. Will everyone benefit? No. Again, it depends on a number of variables and all the trade-offs Congress had to make, because they backed themselves into a corner by not controlling spending. So the size and scope of tax reform had to be shoe-horned to fit within the budget constraints they created themselves.

Just remember that if Hillary had won, you wouldn’t have to worry about the effects of tax reform. You instead would be wondering about how you were going to pay all the higher taxes Washington would have rammed through in 2017 to pay for “universal Medicare” (otherwise known as single payer), “free college for everyone”, “universal basic income” ( welfare for all), “universal federal jobs for everyone” (essentially the federal government becomes the largest employer in the nation assuring Democrat control forever), massively expanded welfare, food stamps, and every other Democrat social engineering policy. While also throwing our borders wide open to unlimited importation of low-skilled, largely illiterate illegal immigrants, who all would be entitled to numerous taxpayer-provided handouts. Thus creating a massive need in Washington for more and more taxpayer dollars to pay for the “free stuff”. :-))

Kim
3 years ago
Reply to  PaulE

Thanks Donald and PaulE-
Unquestionably, tax reform is the best thing since….(fill in the blank). And it’s still filtering through the system, so the benefits are compounding (lower energy bills, better retail figures, higher stock market…)
But to those who say, “It isn’t a big deal. I’m not getting that much more in my paycheck.” or “Yeah, but I can’t deduct mortgage interest any more.” I’d like to be able to come back and say, “When you file your taxes next April, you’ll be getting ANOTHER boost because of the higher standard deduction.” Yes, I realize that every case is different, but I hope I won’t be lying when I say that we haven’t seen it fully effected—for the majority of us. I just thought it could be a selling point in the midterm elections and something to look forward to in April.
And I’m on your side, both of you, when it comes to how the government spends our money. This does not make me happy at all!

PaulE
3 years ago
Reply to  Kim

The tax reform passed was good, but no one would say it was perfect. Far from it, but a good phase one of a multi-year plan. That Trump managed to force Ryan, Brady, McConnell and others to include as much as they did for small businesses and individuals is a testament to Trump”s force of will. Otherwise all that would have passed in the current legislation would have been tax cuts for large C corps. Ryan and McConnell were fully prepared to “postpone” all the small business and individual cuts for some “phase two”, which neither Congressional leader would commit a firm time table for.

It will take approximately two years for the full effect of the tax cut’s to fully work through the economy. Then the additional economic activity should lead to more business and economic expansion as history of past tax feforms has shown. The process only halts when Democrats get back in control of Washington and return to the standard tax and over regulation they love. This chokes off the economy and businesses then hunker down or move off shore until more favorable conditions return.

Most of the Fortune 1000 companies are already in the process of repatriating the three to four trillion dollars they have stockpiled overseas over the last 25 years. To date, already $500 billion has flowed back to the United States and is being taxed at the lower rates. The balance will be put to work in this country versus Ireland, Germany, Vietnam, Hong Kong, etc. That means more economic growth, business expansion, jobs and paychecks. None of which would have happened without tax reform.

As for what most individuals will see when it comes to benefits, I already had my accountant do a full work-up of my 2018 returns earlier this year using the news rates and regs. Even though I will still have to itemize, because of various income streams, I still end up coming out a bit ahead. That is in spite of living in a high tax, very progressive blue state. So as I said before, most people will be pleasantly surprised when they file next April. Will everyone benefit? Again no. The tax legislation has an income table that shows where the point is between benefit or loss. The SALT issue could have been avoided by not hiking the child tax credit as much as they did to get Rubio”s vote, so he could have an issue to run for President again in 2020. Congress could have also showed some spending restraint in both budget bills they passed. Blame McConnell”s intransience for not getting rid of the filibuster rule for the need to get Democrat votes on anything over the last 18 months.

Paul
3 years ago
Reply to  Kim

I’ve only managed to make the standard deduction. In the last five years, there was only one time I actually had enough itemized deductions to make it worth the effort (although, I still try). That being said, with the standard deduction being basically doubled, there’s no point in even trying.

Wayne Peterkin
3 years ago

As someone retired and living on a modest pension and social security, I certainly favor reduced taxes since a fixed income does not rise yet inflation does. However, my support for tax reform had nothing to do with any personal benefit and everything to do with creating a growing, robust economy along with more jobs; an economy that benefits the entire nation. I have kids working and grandkids growing up! We seem to have gotten that economy finally after the disaster the Democrats favored for 8 long years. As far as the national debt is concerned, that is a big problem that can be solved by freezing any government spending increases while allowing that same growing economy to increase tax revenues, revenues that are not dependent on tax rates. An economy growing at 4%/yr can be expected to grow tax revenues by roughly that same amount. Deficits will come down unless increased spending eats up the increased revenues.

Donald Tucker
3 years ago
Reply to  Wayne Peterkin

Shrink the bloated Government Bureaucracy.

Ralph
3 years ago

God, Guts, Guns…Let’s keep all three!

Wingleader
3 years ago
Reply to  Ralph

Not many Americans have those three virtues today, unfortunately!

Jeanne
3 years ago
Reply to  Ralph

Amen, Ralph!

BajaRon
3 years ago

Nancy Pelosi say’s ‘It’s just crumbs’ and ‘Pathetic’! But the democrats are clawing tooth and nail to get those ‘Pathetic Crumbs’ back from our pocket into theirs!

Hopefully, America is waking up to the bankrupt ‘Venezuelan’ path that the democrats are trying to sell. Let’s stick with freedom and responsibility and reject the lefts Victim, Welfare and Tyranny program.

Cookiepress
3 years ago
Reply to  BajaRon

crumbs to her but not to working middle class

Donald Tucker
3 years ago
Reply to  BajaRon

And when Obama reduced the withholdings from paychecks, which really were just crumbs, Pelosi was elated. She can’t have it both ways.

Paul
3 years ago
Reply to  BajaRon

well said BajaRon

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