How the GOP tax plan will impact the Heartland - KFVS12 News & Weather Cape Girardeau, Carbondale, Poplar Bluff

How the GOP tax plan will impact the Heartland

SOUTHERN ILLINOIS (KFVS) -

The House passed the long-awaited tax overhaul and some lawmakers are celebrating this historic win. 

This massive tax cut and reform bill has left many people wondering what type of financial changes they will see in their pocket.

John Jackson, a political expert with the Paul Simon Public Policy Institute at Southern Illinois University, said this is huge.

 “It’s, it’s a big deal, there’s no question about it," Jackson said. “It’s not the biggest tax cut in history as the President frequently claims, but it is a big change in the tax rate. And those tax rates are going to impact virtually everyone in the negative or in the positive.”

Impacting many people in the Heartland region, Jackson believes the middle class in Illinois will be at a disadvantage.

For example, the tax code does away with the Obamacare Individual Mandate, so now you will be not be required to buy health insurance. Jackson said 13-million people will be without healthcare. 

According to Jackson, the average middle-class family will see about $1,400 additional in their pocket. 

“They’re going to have to figure out the new rules and how they want to get healthcare and if they want to buy healthcare insurance," said Jackson.

And as for the effect on small businesses, he said it's complicated.

“There’s not an easy answer to that, they’re going to have to study this thing it’s so complicated and figure out what benefits them," said Jackson.

But according to public opinion in a Gallup Poll done on December 1 & 2, the American people have low approval rating for these tax changes.

Jackson said that the Republicans need to convince the people. 

“The Republicans are saying this is a great income tax reduction for the American people and it’ll be especially good for the middle classes,democrats" said Jackson. "They are saying that it’s disproportionately skewed toward big corporations and the rich."

So, is the Republican or Democrat right?

“It’s one of those cases where both sides is right, they’re just emphasizing different aspects of it,” said Jackson. 

"Mainstream economist study this stuff," he said. "They say at best a tax cut will generate enough new business enterprise to pay about one-third of the cost of the tax cut."

But, according to Jackson, the cost of the tax cut will cost about $1 to $1.5 Trillion.

“Stay tuned…yep…it’s not all over," Jackson said. "It’s hard to know yet.”

February is when the new plan will be in effect.

Jackson said he does believe it will affect the midterm elections next year. 

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