People in West Michigan could see tax break from national reform
Generally, it appears a majority of taxpayers will get a tax cut if Congress comes together on a plan to send to President Donald Trump by the end of the year.
The Joint Commission on Taxation (JCT) found that 62 percent of Americans would get a tax cut in 2019 and the rest would pay the same or would have their taxes raised.
For those making $50,000 to $75,000 in 2023, the JCT indicated 36% would get a tax break of $500 or more and another 19% would get a break of $100-$500. But 19% would pay about the same as they do now, 11% would pay $100-$500 more, and 15% would pay an extra $500 or more.
There are plenty of questions still remaining about what a potential tax cut will look like.
CPA Phillip Mitchell, President of Kroon & Mitchell in Grand Rapids, says our area comes out a little better than others because there's less impact with what's being taken away in deductions.
He also says taxes should be simpler.
"It should be easier to file a tax return and that's sort of one of the goal to make it a simpler system," Mitchell said.
Some of the potential winners of the new tax deal include businesses which are getting a 15 percent tax decrease. Also Mitchell says low and moderate income taxpayers with children and no deductions should also get extra money.
The losers potentially include those who have high medical costs, have been victimized by a natural disaster or live in a high-tax region. Wealthy states such as New Jersey, New York and California as well as pockets of suburbs around the country could find that the loss of deductions eliminate any benefit from lower tax rates.
USA Today recently broke down the winners and losers after the U.S. House passed the tax reform bill.
This is being considered the biggest tax revision in 30 years.
The Senate bill will now have to be reconciled with the similar bill in the U.S. House. Ultimately, it's expected several differences will be ironed out before the legislation is sent to President Trump's desk.
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