What the tax cut means to you - the news is as good for Floridians as promised
Bottom Line: A saying of mine you'll commonly hear me say is that there are two sides to every story but just one side to every fact. As tax reform was signed into law last December I broke it down in a two-part story about what it would mean to you. In that story I indicated that the average American would benefit by more than 7% through a combination of raises, bonuses and lower taxes with Floridians benefiting even a bit more than average. Here's an excerpt from mid-January when I updated my research:
The average American making the average full-time income ($48,000) will save 4% this year on their taxes. What's more is that wage growth was pacing 3.6% in January for the start of 2018. That means that the average American will have well in excess of 7% more net take home pay this year. That's the largest year over year increase in net take home pay in 32 years.
So now that we have the first quarter under our belt what are we seeing? According to the latest from the Tax Policy Center analysis... Floridians are benefiting from the new tax law by having an 8.1% lower burden. The average tax benefit (including all workers - full & part time) is pacing $1,290 in Florida. That means that my projected tax benefit for the median full-time employed Floridian of $1780, absolutely holds and will likely be even bigger as wage increases are factored in fully. Any how about those high tax states? Even they're seeing huge benefits.
The average New Yorker is benefiting by a tax burden that's 5% lower, Californians have a 5.6% lower burden and those in New Jersey are saving 6%. Those who live in the Dakotas are faring the best overall. They're saving more than 10% on average this year.