President Donald Trump's tax plan, introduced during the campaign and outlined in more detail this week, aims to "reduce taxes across the board." But how exactly will it impact you? Will your taxes actually end up lower?
As you'll see in the chart below, the GOP 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 this chart to see how you may be affected.
While it's still hard know exactly how Trump's tax reform will play out, financial advisors are encouraging clients to start preparing today for any changes that may be on the horizon.
"Don't overreact or make any plans based off of something that isn't law, but still be aware of the changes that are being proposed," Garrett Oakley, CFP at Betterment, tells CNBC Make It. "Have a game plan if it does go through, but don't pull the trigger until it's official. It's a slow process to have a tax plan go into effect."
This article has been revised and updated.