Middle-class Americans in these states will see biggest tax cuts
Wall Street Journal Global Economics Editor Jon Hilsenrath on the mounting uncertainties weighing on the U.S. economic outlook.
The Trump administration announced a sweeping overhaul of the U.S. tax code about one year ago, which is expected to lower tax dues for the majority of Americans.
In fact, 80 percent of taxpayers are expected to owe less, while 15 percent will see no change, according to the Tax Foundation.
However, in some states the tax benefits will be larger than others.
Here are the states where Americans earning a salary between $50,000 and $75,000 will see some of the biggest tax cuts, compiled using data from the Tax Foundation.
Alaska
Residents of Alaska are expected to see among the largest tax cuts under the Tax Cuts and Jobs Act. For those earning a salary within the range of $50,000 and $75,000, the average tax cut is expected to be about $1,516.26 – or about 2.5 percent of income. Alaska is one of just a handful of U.S. states that has no personal income tax.
The state is estimated to have added slightly more than 400 jobs in 2018.
North Dakota
Residents of North Dakota are expected to see average tax savings of about $1,488.95.
North Dakota has five rates at which individual incomes are taxed – ranging from 1.1 percent to 2.9 percent for those making more than $411,501.
The state added slightly more jobs than Alaska in 2018, at about 622.
Utah
Tax savings in Utah for individuals with incomes between $50,000 and $75,000 will be about $1,478.97, according to the Tax Foundation.
In 2018, the Utah state legislature lowered its statewide income tax to 4.95 percent, from 5 percent.
The state created nearly 2,200 jobs in 2018, according to the Tax Foundation.
Ohio
Taxpayers in Ohio are expected to see a tax cut of $1,476.26, slightly less than Utah’s residents.
For those with higher incomes, between $75,000 and $100,000, savings will be about $2,006.
Ohio has 9 brackets for personal income taxes, with rates ranging from 0.495 percent to 4.997 percent.
It is estimated to have added nearly 8,100 jobs during the year.
Vermont
Tax savings for residents in Vermont are among the highest on the East Coast at an expected $1,472.48 for people earning the median income.
The state’s income tax system includes five brackets ranging from 3.55 percent to 8.95 percent.
Vermont is estimated to have added 455 jobs in 2018.
Least savings
Among the states where residents will see the lowest tax cuts are Maryland ($1,194.98), California ($1,265.71), Georgia ($1,262.17) and Mississippi ($1,279.01).