Hopefully, you’ve filed your taxes–if not, you have until midnight to get that done. And next year, things will be a little different. A new tax structure will be in place. Here’s a closer look at what those changes will mean for you:
“Good riddance!” That’s what a lot of Republicans are saying about the old tax system. When the clock strikes midnight, it will begin a new era in how much we pay and there are great expectations that many Americans will get happier returns next year.
The goal is to make taxes, well, less taxing. Republicans, like Georgia 1st District Congressman Buddy Carter says the old structure was too complicated, unfair, and frankly not user-friendly when it boils down to the forms.
Carter says, “This is the last time that you’ll have to fill out a long, laborious form like last year. Next year it will be much shorter, much simpler.”
Simpler because there are eight income brackets with the lowest wage earners paying zero and those with the highest income paying around 37 percent.
A typical, middle-income family of four in Georgia can expect a tax cut of more than $2,200. In South Carolina, that same family should receive cuts of nearly $2,100.
“What we’re trying to do is make it fair. To make it simple, and to put more money in your pocket so that you can spend more money than sending it to Washington, D.C.,” Carter says.
It also significantly increases the standard deduction to protect roughly double the amount of what you earn each year from taxes from $6,500 and$13,000 under current law to $12,000 and $24,000 for individuals and married couples, respectively. It also expands the child tax credit from $1,000 to $2,00.
Ninety percent of Americans will see more take-home pay.
It’s being called the biggest tax reform ever, but government bean counters report reform by presidents Reagan and Obama were bigger.