GOP plan would stick millions with bigger tax bills—this chart shows your odds of getting hit
It's being billed as a "massive tax cut," but millions of American households will end up paying more to the Treasury if the GOP approves a final tax plan and President Donald Trump signs it into law. Your odds of being hit with a bigger bill depend on a number of provisions, many of which are still being finalized. To better show the impact of these factors, analysts at the Institute on Taxation and Economic Policy crunched the numbers and came up with an estimate of how individual households may fare under the new rules. These estimates aren't definitive. The new rules are so complex that two taxpayers in the same neighborhood with the same household income could see very different tax bills. But numbers provide a broad look at where the burden of the tax changes will fall. Much of the debate over the bill has focused on the the average changes for American households. But focusing on those averages overlooks the specific impact on each individual tax return. Some will see big savings; others will get hit with large increases. There are some major variables that will have a big impact in determining how tax reform hits your household budget. If you're paying a lot of state and local income and property taxes, for example, you could owe a lot more if those popular deductions go away. A lot also depends on where you fall on the income ladder; in general, the more you make, the more you'll save on taxes if the Republican tax plan becomes law. The plan covers a 10-year span, with the biggest cuts coming in the early years. That's why some people who may see a tax cut in 2019 could see their taxes rise again by 2027.WATCH: Congress sails full steam ahead on tax overhaul bill It's being billed as a "massive tax cut," but millions of American households will end up paying more to the Treasury if the GOP approves a final tax plan and President Donald Trump signs it into law. Your odds of being hit with a bigger bill depend on a number of provisions, many of which are still being finalized. To better show the impact of these factors, analysts at the Institute on Taxation and Economic Policy crunched the numbers and came up with an estimate of how individual households may fare under the new rules. These estimates aren't definitive. The new rules are so complex that two taxpayers in the same neighborhood with the same household income could see very different tax bills. But numbers provide a broad look at where the burden of the tax changes will fall. Much of the debate over the bill has focused on the the average changes for American households. But focusing on those averages overlooks the specific impact on each individual tax return. Some will see big savings; others will get hit with large increases. There are some major variables that will have a big impact in determining how tax reform hits your household budget. If you're paying a lot of state and local income and property taxes, for example, you could owe a lot more if those popular deductions go away. A lot also depends on where you fall on the income ladder; in general, the more you make, the more you'll save on taxes if the Republican tax plan becomes law. The plan covers a 10-year span, with the biggest cuts coming in the early years. That's why some people who may see a tax cut in 2019 could see their taxes rise again by 2027. WATCH: Congress sails full steam ahead on tax overhaul bill
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