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What Trump's tax plan means for families in 20 U.S. cities

  • What Trump's tax plan means for families in 20 U.S. cities

    Regardless of political affiliation, most Americans will be closely monitoring the upcoming vote for Trump’s Tax Cuts and Jobs Act. Introduced in late October by House Republicans, the plan calls for extensive changes that would constitute the most significant overhaul of the tax system in decades.

    The plan encompasses a wide range of changes to the federal tax code, including reducing corporate tax rates, rolling back estate taxes, expanding family and child tax credits, and lowering the maximum mortgage interest rate deduction. Throughout the deluge of changes, two components stand out for their widespread relevance to American families: the simplification of tax brackets and rollback of deductions related to state and local taxes (SALT).

    Under the new proposal, federal income tax brackets would reduce from seven tiers to four, with rates of 12%, 25%, 35% and 39.6%. Meanwhile, state and local tax deductions, currently used by nearly one-third of filers, would be capped at $10,000 per person for property taxes and eliminated entirely for income and sales taxes - a change intended to raise new revenue crucial to making the Trump plan economically viable.

    A new study by SmartAsset's Derek Miller and Dave Colletta analyzes how the new tax plan would impact families in 20 major cities across America. This evaluation looks at how total income taxes would change under the Trump plan for each metro across four tiers of household income: low (20th percentile of earners), median (50th percentile), high (95th percentile), and highest ($1.5 million in household income).

    While there are a number of factors that impact each family’s take-home paycheck, this analysis offers a revealing look at how the proposed tax reforms can play out for a significant portion of Americans. Check out the list to see how your taxes may be affected.

  • St. Louis, Missouri

    Low income ($14,700): No change (current $1,125 vs. Trump plan: $1,125)

    Median income ($40,346): No change (current $4,342 vs. Trump plan: $4,342)

    High income ($181,200): $2,062 tax decrease (current $47,943 vs. Trump plan: $45,881)

    Highest income ($1,500,000): $10,091 tax increase (current $621,075 vs. Trump plan: $631,166)

  • Denver, Colorado

    Low income ($25,000): No change (current $3,070 vs. Trump plan: $3,070)

    Median income ($61,105): $646 tax decrease (current $9,402 vs. Trump plan: $8,756)

    High income ($250,000): $6,222 tax decrease (current $71,210 vs. Trump plan: $64,989)

    Highest income ($1,500,000): $3,086 tax decrease (current $597,823 vs. Trump plan: $594,736)

  • Tampa, Florida

    Low income ($18,800): No change (current $1,438 vs. Trump plan: $1,438)

    Median income ($50,405): $293 tax decrease (current $4,149 vs. Trump plan: $3,856)

    High income ($250,000): $6,222 tax decrease (current $60,333 vs. Trump plan: $54,111)

    Highest income ($1,500,000): $28,931 tax decrease (current $559,681 vs. Trump plan: $530,750)

  • San Diego, California

    Low income ($30,100): No change (current $2,537 vs. Trump plan: $2,537)

    Median income ($71,481): $957 tax decrease (current $10,470 vs. Trump plan: $9,513)

    High income ($250,000): $6,222 tax decrease (current $76,705 vs. Trump plan: $70,483)

    Highest income ($1,500,000): $29,822 tax increase (current $644,734 vs. Trump plan: $674,556)

  • Minneapolis, Minnesota

    Low income ($19,800): No change (current $1,515 vs. Trump plan: $1,515)

    Median income ($56,255): $500 tax decrease (current $6,954 vs. Trump plan: $6,454)

    High income ($222,200): $5,137 tax decrease (current $64,282 vs. Trump plan: $59,145)

    Highest income ($1,500,000): $22,951 tax increase (current $640,703 vs. Trump plan: $663,654)

  • Seattle, Washington

    Low income ($31,500): No change (current $2,410 vs. Trump plan: $2,410)

    Median income ($83,476): $1,317 tax decrease (current $11,640 vs. Trump plan: $10,323)

    High income ($250,000): $6,222 tax decrease (current $60,333 vs. Trump plan: $54,111)

    Highest income ($1,500,000): $28,931 tax decrease (current $554,347 vs. Trump plan: $525,416)

  • Detroit, Michigan

    Low income ($9,900): No change (current $757 vs. Trump plan: $757)

    Median income ($28,099): No change (current $2,954 vs. Trump plan: $2,954)

    High income ($115,800): $2,770 tax decrease (current $25,689 vs. Trump plan: $22,919)

    Highest income ($1,500,000): $8,137 tax increase (current $620,489 vs. Trump plan: $628,626)

  • Riverside, California

    Low income ($25,900): No change (current $2,137 vs. Trump plan: $2,137)

    Median income ($63,548): $719 tax decrease (current $8,333 vs. Trump plan: $7,614)

    High income ($198,500): $3,359 tax decrease (current $53,856 vs. Trump plan: $50,497)

    Highest income ($1,500,000): $29,398 tax increase (current $640,899 vs. Trump plan: $670,296)

  • Phoenix, Arizona

    Low income ($22,200): No change (current $1,783 vs. Trump plan: $1,783)

    Median income ($52,062): $374 tax decrease (current $5,420 vs. Trump plan: $5,045)

    High income ($200,100): $4,007 tax decrease (current $50,319 vs. Trump plan: $46,312)

    Highest income ($1,500,000): $4,617 tax decrease (current $594,667 vs. Trump plan: $590,050)

  • San Francisco, California

    Low income ($31,000): No change (current $2,624 vs. Trump plan: $2,624)

    Median income ($103,801): $1,927 tax decrease (current $19,934 vs. Trump plan: $18,007)

    High income ($250,000): $6,222 tax decrease (current $76,677 vs. Trump plan: $70,455)

    Highest income ($1,500,000): $29,727 tax increase (current $643,882 vs. Trump plan: $673,609)

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