Despite the Democrats arguing that the Tax Cut and Jobs Act will only benefit the wealthy and corporations, CBS News is now reporting that the bill will in fact mostly benefit middle and lower-class folks around the country. It is estimated that roughly 80% of all Americans will now pay less or no taxes for the next eight years. This is according to nonpartisan research analysis that looked at the effect of the Tax Cut and Jobs Act across the income spectrum.
CBS News took three different families across America and had their taxes analyzed by Jeffrey Levin, who is a certified public accountant. Jeffrey Levin looked at each family’s tax returns for the previous year and stated how the new tax cut law signed by President Trump would impact them in the future. Here is what CBS News has reported the impact will be.
Marcie George lives in Cary, North Carolina. Her income is about 40,000 a year. She is a single mother that rents her home. She thought that the tax bill would not help her due to spin by the Democrats and media. Analysis by Jeffrey Levin of Blueprint Wealth states that she would pay about $1,300 less in taxes per year. This is due to the child tax credit being increased to $2,000 per child. For someone like Marcie George who lives from paycheck to paycheck, $1,300 is a huge sum of money that she can use or save.
Amber and Jason Edwards are a couple with no kids living in Providence, Rhode Island. They make over $150,000 combined. The couple is sound financially but have significant college debt that they are trying to pay down. According to tax analysis, even this couple would pay less in taxes. They would pay about $650 less. This is money that they can use to pay off loans faster.
In Fresno, California, Melissa and Layne Lev are also a married couple. They earn about $300,000 in income and own a small business. The Levs also have three young children. They were concerned that they would have to pay more in taxes because of the reduction of state and local tax deductions in the new bill.
Accountants found that the Lev family would pay up to $13,000 less in taxes every year. This is because they would now qualify for a child tax credit for each of their children. They would also not have to face the alternative minimum tax which will save them additional money.