What does the new tax reform bill mean for your income? - FOX Carolina 21

What does the new tax reform bill mean for your income?

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Congress passes new tax bill. (Courtesy: AP Graphics) Congress passes new tax bill. (Courtesy: AP Graphics)

It became the talk on Capitol Hill for months. Now, after deals and negotiations, Congress passed a new bill.

"Middle class taxpayers are going to get some benefits," said Tom Smythe, a business and accounting professor at Furman University.  "Someone that is in a family of four makes the median income in the United States which is about $59,000- if they standardized their deduction where the standard deduction is going from roughly $12,000- $24,000 they should see a tax decrease of about $2,000."

So, he says that could mean about $100 to $200 a more a month in a check. 

Companies and corporations will see the biggest cuts.

"The corporate tax rate has gone from roughly 35 percent down to 21 percent," Smythe said.

He says the intent is to give company executives incentive to pay their employees more money.

"Just because corporations have the money doesn't mean that they have to pay people more and invest in people here in the United States," he said.

Some in Congress believe the tax cut will create more jobs and help companies compete with companies overseas.

"A number of those companies have announced very large investments here in the United States," Smythe said.

For example, company executives with AT&T, Boeing, and others say they will hire more people. However, a polly by Yale University shows only 14 percent of company executives say they will raise wages or hire more employees. Many of them plan to re-invest in stocks with their own companies.

The new tax bill doesn't repeal Obamacare, but it does scrap the mandate, which is a tax paid by those who didn't have health insurance. 

"It will have a significant impact on the ability for certain people to be able to buy insurance," Smythe said.

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