(NETWORK IN) How the tax bill affects you depends on a lot of things, but you’ve got one big advantage: you’re in Indiana.
In states like California, New York and New Jersey, high housing costs and state and local taxes mean many middle-income residents itemize. The tax bill reduces how much of those expenses you can deduct.
Todd Roberson teaches finance at I-U-P-U-I’s Kelley School of Business. He expects just about everybody who takes the standard deduction, and 90-percent of Hoosiers overall, should see a tax cut.
Indiana’s median income is about 50-thousand dollars — that should translate to a tax cut around 600 bucks. But the tax plan eliminates the personal exemption for each member of your household, replacing it with a big increase in the standard deduction. Roberson says a low-income family with lots of kids might see its taxes go up as a result.
Roberson argues the biggest impact of the bill won’t be the changes in your tax but in the corporate tax. He predicts slashing that rate by a third, bringing it down to the global average, will raise wages and trigger new investment.