Breaking down West Virginians' paychecks under the GOP tax reform plan
CHARLESTON, W.Va. (WCHS, WVAH) —
One of the promises of President Donald Trump's tax reform plan was helping lower taxes for the vast majority of Americans.
You may have noticed some of the change in your paycheck, but you may not see the full effect until next year.
Our iTeam broke down the numbers and found there is quite a difference in what taxpayers save, depending on how much they make.
The Institute on Taxation and Economic Policy, a nonprofit, nonpartisan research organization based in Washington, D.C., crunched the numbers for all the states, including West Virginia.
They are already looking ahead to 2019, once all of the changes have taken place.
Many people we talked to weren’t sure how they would be affected by the tax changes.
So, we set out to break down the numbers for them.
If you make less than $20,000, you get a tax break on average of about $60. That breaks down to about $5 extra a month.
The typical family household in West Virginia makes around $40,000 to $45,000 a year.
They will see on average about $400 in tax cuts. That breaks down to about $33 extra a month.
For those on the upper end of the pay scale, the cuts start getting bigger.
If you make about $100,000, you will see a tax cut of about $2,000, which breaks down to about $167 a month.
If you are in the wealthiest 1 percent in West Virginia, those with average incomes of about $750,000, you have see a tax cut of about $28,000 or about $2,000 extra a month.
“They say they have most of the income, they pay most of the taxes,” said Sean O’Leary, senior policy analyst with the West Virginia Center on Budget and Policy.
“But if you look at, say, what size of a tax break are they getting, they’re getting a bigger tax cut as a share of their income than middle income West Virginians. So the exact numbers, they’re getting around a 4-percent tax cut compared to a middle class West Virginian who’s getting about a 1 ½ percent tax cut,” O’Leary said.
Overall, according to the group’s analysis, 79 percent of taxpayers in West Virginia will see a tax cut, 5 percent will see a tax increase, and the remainder, 16 percent, will see no changes.
Many of the changes affecting taxpayers in this case are scheduled to expire after 2025, unless Congress acts to extend them. If not, these tax rules would revert back to those in effect in 2017.
Of course, there are a lot of variables involved for each person, so your numbers may be slightly different.