Brian Blanco | Getty Images
Donald Trump speaks to supporters during a town hall meeting on March 14, 2016 at the Tampa Convention Center in Tampa , Florida.
President-elect Donald Trump’s tax plan aims to “reduce taxes across the board.” But how exactly will it impact you? Will your taxes actually end up lower?
Howmuch.net, a cost information website, has created a handy infographic to help answer that question.
As you’ll see in the chart below, Trump’s tax plan is a simplification. He wants to reduce the number of individual tax bands from seven to three:12 percent, 25 percent and 33 percent.
“But simplifying is not necessarily the same as reducing taxes,” the cost information site explains.
“Some taxpayers would definitely benefit from Trump’s tax reform — especially those at the higher end of the income scale. There are others, however, who would see their tax rates go up. Especially those on lower incomes.”
Howmuch.net also notes that “the graph does not take into account other aspects of the Trump tax plan not directly related to the changes to income tax bands, such as the increase of standard deductions and a cap on itemized deductions, although of course these would also have an impact on net incomes.”
CNBC’s John Harwood calls Trump’s tax reform a “remarkable paradox,” as middle America may not benefit as much as coastal elites.
Check out the chart to see how you may be affected.
While it’s impossible to know exactly how Trump’s tax reform will play out, financial advisors are encouraging clients to start preparing todayfor any changes that may be on the horizon.
Check out the full report on Howmuch.net.
Don’t miss: Elon Musk says robots will push us to a universal basic income — here’s how it would work.