Lynchburg professor predicts how new tax cut reform could affect families

He says married couples with children benefit the most from tax cut

By Magdala Louissaint - Lynchburg Bureau Reporter

LYNCHBURG, Va. - Ashley Smith is a busy mother of two with another little one on the way. 

“We'll be dropping from the 25 percent tax bracket to 12 and a half where they have it. Depending on where they land on the child deduction, it is expensive these days to raise kids. So even just a little bit will help,” Smith said.
She is all for the new tax-cut reform law.

“I mean you look back to Regan and see how much we've gone up in taxes to actually give people. Right now, the government is borrowing money and putting it into a deficit. And we're still trying on one income. Trying to make ends meet, you know you have worry about what you buy in the grocery store and limit it,” Smith said.

Gerald Prante is an Economics professor at Lynchburg College. He crunched the numbers to show how different families around Lynchburg will fare under the new tax bill in 2018.

He said those who will benefit the most in the Hill City are married couples with two children and an income of about $80,000--- they could see a $2,100 tax cut.  

“And that's mainly because the tax refund package will double the child tax credit. From a $1,000 per kid to $2,000 per kid. And there's your $2,000 savings right there,” Prante said. 
Prante said in the spring some people may start seeing the tax cut reflected in their paychecks. 

But for families like Ashley Smith's who have to be cautious about spending, "To be getting close to $3,000 that you're not paying in taxes that you can actually pay a car off, fix something in your home, buy a refrigerator if you have to. All those things that majority of families nowadays are having to push off or not being able to do,” Smith said.

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