With the tax bill set to add $1.5 trillion to the deficit over the next few years, a lot of people were upset without knowing how the tax bill affected them. People who opposed the party supporting the tax bill were in arms without knowing why. If you want to know more about the new tax bill, you’ll need to research.
Understanding what the new tax bill means for you entails having an understanding of your financial status compared to the rest of Americans. If you live in a city you could be a high earner while having a lower quality of life. The cost of living in your region could be making the tax bill feel like it hits you harder than if you were living somewhere else.
If you want to know more about how the tax bill will change your life, check out these 4 ways it could affect you.
1. Keep Your Wealth :
Wealthy individuals who already benefit from a low capital gains tax are set to continue to do well under the tax bill. If you’re already a high earner, making more than $700,000 a year, you could receive many of the benefits of the bill.
People who earn high incomes are set to pay lower taxes starting next year.
While this is good news for some, the other 90% or more who earn much less than that are seeing it as bad news. The loss of high-wage tax revenue means there’s less money for public infrastructure, schools, or vital government programs. We’re slated to see an increasing wave of cuts for social services thanks to the need to balance the benefits rewarded to the wealthy.
2. Something For The Middle :
Most of the people in the middle class are slated to see a tax cut next year. The middle class between $48,000 a year and $85,000 a year are set to see the most benefits from this change.
People in the middle class could use this small cut, around $1,000, as a way to invest in new ways or to build out a small business.
If you’re a small business owner but not sure how much you’re making per year, using an online pay stub maker can keep track of that for you.
3. Healthcare Costs Will Rise :
The new tax bill changes the healthcare mandate, requiring everyone to be on health insurance.
While this was irritating to some, the number of new people insured caused costs to lower. It could knock tens of millions of people out of coverage.
4. Students Are Safe :
When the tax bill was first announced, students were worried by some of the rumors. While there was talk that tuition waivers might be eliminated and employer tuition assistance would be taxed, nothing of the sort has happened yet. For now, the student loan deduction stands.
Students are safe to go back to what matters, like choosing a major.
Finding Out What The New Tax Bill Means Is Important :
Getting to know what the new tax bill means can help you predict your financial future. As more people are employed as contractors or through the gig economy, knowing where you’ll stand for the next few years to come is important for workers.
If these changes make you want to get out of the country, make sure you’ve got your passport updated and are aware of changes to that process.