A Closer Look at the New Tax Law’s Effects
The Tax Cuts and Jobs Act (TCJA) promised an income tax cut for most Americans. Is that promise less likely to be fulfilled if you live in certain states?
The Tax Policy Center (TPC) released a recent report addressing the TCJA’s effect on individual states and income levels. TPC concluded that, for tax year 2018, approximately 65% of all households will see a personal income tax cut while just over 6% will see an increase in individual taxes. The rest will see a negligible difference.
Nationally, the average change in after-tax income is expected to be 1.8%. However, the TCJA does not affect all states equally.
Pack Up, Honey – We’re Moving to Fargo
Where do the most households benefit from the TCJA? North Dakota’s 75.4% leads the way, with Iowa and New Hampshire behind at 71.9% and 71.0% respectively. On the other side of the coin, only 60.1% of Alaskans will benefit (the fewest in…