Tax reform mania hit the U.S. at the end of 2017. And now, the new U.S. tax code starts impacting workers’ paychecks. While U.S. consumers have been promised tax cuts, very little information is available to consumers on how they will be impacted personally. 

At Branded, we were curious how our U.S. community members think they will be impacted by the new law. Will their taxes go up? Or go down? Will their taxes stay the same? Or are they just plain confused? We polled our community on February 17, 2018, and 15,976 community members responded.

Overall, our poll found there is much uncertainty. Roughly 19 percent of U.S. community members think they will pay more taxes and 19 percent think they will pay lower taxes. About 22 percent of U.S. community members think their taxes will remain the same. And approximately 40 percent of U.S. community members feel unsure of how the new tax law will impact their wallets. 

Digging deeper, we evaluated key consumer audiences and discovered nuances perception of the new tax code.

GEOGRAPHY

Provisions in the new tax code are likely to impact those living in certain states more than others. This is especially true of community members living in areas with high state and local taxes like Washington D.C. and New York. Community members living in solidly Republican states like Alaska and Missouri are likely to think their taxes will decrease as a result of the law.  

“My taxes will increase” – Top 5 States

“My taxes will decrease” – Top 5 States

  1. Washington D.C.: 33%
  2. Vermont: 30%
  3. New York: 27%
  4. Iowa: 25%
  5. Connecticut: 25%
  1. Alaska: 38%
  2. Missouri: 30%
  3. North Dakota: 29%
  4. Utah: 29%
  5. Indiana: 26%

GENDER

Women are much more likely than men to feel unsure of how the new tax law will impact them their finances. Roughly 47 percent of women indicate they feel unsure of how the tax plan will impact them compared to 29 percent of men. Approximately 1 in 5 men think they will pay higher taxes as a result of the new tax plan.

Women by Anticipated Impact of New U.S. Tax Law 

Men by Anticipated Impact of New U.S. Tax Law 

GENERATION

Younger generations are more skeptical of the impact of the new tax bill than older generations. Millennials (age 21-38) and Gen X (age 39-50) community members are more likely to think they will pay higher taxes under the new regulations than older generations. Roughly 16 percent of Baby Boomers (age 51-69) and 11 percent of the Silent Generation (age 70+) think they will pay increased taxes under the new tax bill.

Generations by Perception of Increased Tax Bill