How will tax reform affect you if you earn less than 100 thousand per year

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On Tuesday, the Senate Budget Committee approved the Republican Senate Tax Plan, clearing the way for the bill to be considered this week. The bill will lower the corporate tax rate from 35 to 20 percent, but many Americans do not know how the tax plan will affect them personally.

One of the reasons for the ambiguity is that the Senate tax plan has several significant differences from the plan that was adopted in the House earlier this month.

But on Sunday, the bipartisan Congressional Budget Office (CBO) published a report that calculates the exact impact, positive or negative, of the Senate's tax plan for taxpayers. Their numbers take into account how the tax payments of individuals will change, as well as how the benefits and services they currently receive will be adjusted, for example, Medicare and Medicaid.

The following table uses CBO data as analyzed by PBS. NewsHour, to provide insight into how the Senate tax plan would affect “tax units”—either a family or an individual taxpayer—at different income levels.

Taxpayers who earn $ 75 000 and less

According to CBO calculations, people in each tax group who have an annual income below $ 75 000 will pay more taxes or experience a decrease in the quantity of services, or both, for the 2027 year.

The group with the lowest income will face significant losses, and those who earn from $ 10 000 to $ 20 000 per year will have the most serious losses. According to the CBO, in this year, taxpayers from this niche will see a total loss equivalent to $ 2027.

Taxpayers who have an average annual income in the US

The median income in the U.S. is $55. For these taxpayers, the Senate tax plan would provide a benefit—in the form of tax cuts or service increases—of $775 in 812,98. However, in 2019, taxpayers will begin to experience losses.

Taxpayers earning $ 75 000 to $ 100 000

Those who earn from $ 75 000 to $ 100 000 can count on significant, but declining growth in the period between 2019 and 2027 years.

Those who benefit most from the Senate tax plan

The richest taxpayers have the highest profits in accordance with the Senate tax plan. In fact, the CBO figures show that those who earn more than $ 1 million will make a profit of $ 59 615 when the tax breaks of the bill come into effect in the 2019 year.

Over time, the amount of benefits that millionaires receive from the Senate tax plan will decrease. However, even in the 2027 year, when those who earn more than $ 1 million, get the least benefit, they will still take profits equivalent to $ 9 189,19.

While it is expected that the Senate will make adjustments to the bill, Republicans are optimistic that this will eventually pass.

"It's going to have a lot of adjustments until it's over," President Donald Trump said Tuesday, "but the end result will be a very, very massive tax cut - the largest in the history of our country."

But if you earn less than $ 75 000, this tax is not for you.

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