A new state income tax probably won’t go far in paying for a family trip to Disney World, but it could buy an extra gallon of gas each month, a couple nice dinners out per year or help start a new savings account.
The 5 percent cut to state income taxes approved by lawmakers and Gov. Mike Pence will result in an extra dollar or two per week in your paycheck, depending on how much you make.
A worker will have to earn more than $100,000 per year to see enough savings to pay for one gallon of gas per week, that is, if prices are still around $3.50 per gallon in 2017 when the tax cut is fully phased in.
An extra dollar per week isn’t going to be an immediate financial boon to the average person. But if used thoughtfully, an extra dollar can make a difference in the long term, financial planners said.
That extra dollar can provide clean water to a person in Africa for one year.
