What the new GOP Tax Plan would mean for you
LYNCHBURG, Va. (WSET)-- Lynchburg College professor Dr. Gerald Prante and LC student Alison Turek released a report of what the GOP tax bill would look like for Lynchburg.
According to his data, the majority of homes would see a tax cut.
"If everything goes as scheduled with passage in the house and senate, you'd probably see a smaller tax bill next year than you otherwise would," Dr. Prante said.
He looked at data about the city and came up with a chart covering several demographics. The salaries assigned are accurate for Lynchburg, according to Dr. Prante.
Single earners, who make about $30k would see about $450 cut in their taxes. The big winners are married couples with children. They will see a reduction of almost $2,200. Couple that own a small business like a pizza shop will have a $3,200 cut in their taxes.
"The conference agreement says they get to deduct 20 percent from their income so instead of having to pay tax on 100 thousand, you only pay tax of 80 thousand of your pizza company profits," he said to ABC 13 News.
The losers in this bill are people who will see their taxes raised.
Dr. Prante says less than 5 percent of people in Lynchburg would fall into this category, people who have high property taxes, or itemized deductions around $20-23,000.
This makes up less than 10 percent of people nationwide.
"Most of those are in very high tax state, the New Jersey, California, and New York areas," he said.
Now, he said this will come at a cost. This is expected to cause the national debt to go up $1.5 trillion.
The cuts last until 2025. Dr. Prante said those could be renewed or they could be repealed before then, depending on which political party is in power.