NEW ORLEANS, LA (WVUE) - As President Donald Trump celebrates his first major legislative accomplishment, many of you may be wondering what the new tax plan means for you. We talked with local certified public accountant Kemberley Washington about that.
"For the average American, those individuals can expect to see a decrease in their taxes, about $900," said Washington. "Of course, if you are in a higher tax bracket, you're going to see a way bigger difference in your taxes and you're going to save a lot more so, the winners are those who are wealthy and corporations."
Washington says taxpayers can also expect to see a change in their standard deduction.
"Right now the standard deduction is $6,000 approximately for a single individual, they can expect to see a change up to $12,000," Washington said. "For married individuals, right now, it's currently, approximately $12,000, then you can expect to see a change to $24,000."
FOX 8 political analyst Mike Sherman says while the Republican tax plan is a major legislative accomplishment for Trump, it comes with a negative view in the opinions of most voters.
"They view this is as a giveaway to the wealthy, so it's unclear how this will be perceived by voters as they enter the mid-term elections next year," said Sherman. "So, for a president less than a year into office, Donald Trump is sitting at record low approval ratings. With his first major legislative accomplishment, we should see a little positive bump out of this, but here comes the flip side. This is a very unpopular piece of legislation to many in America with an over 50% negative view by voters."
Under the Affordable Care Act, those who don't have health insurance have to pay a penalty at tax time. Washington says under the new tax plan, taxpayers will no longer have to pay that penalty. She says that could lead to a number of Americans dropping their policies, which may mean higher premiums for those who do have it.
She adds under the new tax plan, individuals will still be able to deduct student loan interest and medical expenses, while tuition waivers will remain untaxed.