What The GOP Tax Bill Could Mean For You

 

Republicans are still celebrating their first legislative victory under President Donald Trump after passing a major tax cut.

We’re taking a look at what this bill could mean for you.

The $1.5 trillion tax cut makes some major changes to current laws, including a lower tax rate for most Americans; however, the personal tax break will expire after 2025 if Congress does not renew the bill.

At that time, tax cuts would roll back to their current levels.

Our team spent a good part of the day researching average incomes in Northern Michigan and calculating exactly what the tax cuts will mean based on the new federal tax brackets under the GOP bill.

According to the U.S. Department of Housing and Urban Development, in Grand Traverse County the average income for a single household is just under $37,000.

Under the new tax legislation, that person would save an average of $1,107 in federal taxes.

That’s compared to the federal tax rates you’re seeing right now.

A two-person home averaging about $42,200 would save about $1,266.

A four-person home with an average household income of about $52,700 would save around $1,581.

Let’s look at Wexford and Chippewa counties, where the average household incomes are about the same.

In those counties, a one-person home averages about $31,300 each year. With the GOP tax cuts, they would save about $930 in federal taxes.

A two-person home with an average income of $35,750 would save $1,072.

A four-person home with an average income of $44,650 would save $1,339.

We do want to stress these figures represent federal tax rates and do not take into account people who itemize their tax returns or the effects of the repeal of the individual health care mandate.