The people of new York will receive the least benefit from tax reform

Changes in tax legislation adopted by Congress in late 2017, will delight new Yorkers. Local authorities initially warned about this, and a recent WalletHub study showed no positive changes for the state.

So, at the end of the study, new York was on the 49th place in the ranking of the States benefiting from changes in the tax laws. The worst situation is only in Connecticut and West Virginia.

It is known that in these States higher wages and, consequently, more taxes. Theoretically, the tax can be reduced by specifying in the Declaration of significant expenses during the reporting year. However, the reform of Donald trump limits the tax credit amount of $10 thousand. So the people of new York and other States, receiving a solid income to depend on the usual tax credit will not.

Also, according to the new algorithm of calculation of tax on income of physical persons, the more money you earn the American, the bontheir share of income he will give to the state. The new tax scale contains rate 10, 12, 22, 24, 32, 35 and 37%. The lower rate is set for individuals with an annual income of less than $ 9 525 and for families earning up to $ 19 050. If the taxpayer receives from $82.5 to $157.5 thousand, he will have to give to the Treasury of already 24%. The top tax rate is 37% — will be levied on incomes of more than $500 thousand.

These innovations clearly not to the liking of the residents of States with traditionally high salaries.

But the financial position of taxpayers of Alaska the new law will significantly improve. Because local households receive the largest U.S. financial assistance.

Among other things, initiated by the trump tax reform envisages a radical reduction of the profit tax of legal entities from 35% to 21%, as well as the means of their activities abroad returned to the country.

Source: WalletHub