Expert explains how tax cut affects Valley residents

Over the past few months, many have wondered if their taxes would increase next year, after last nights vote.

Rio Grande Valley residents finally have an answer.

According to congressional estimates, extending the Bush Era Tax Cuts could reduce unemployment to below 9 percent and generate economic growth.

But according to a local tax preparer, it could do a whole lot more.

David Perez with Liberty Tax Service in Harlingen said for people who are in college, it's like a dollar for dollar tax rebate.

It's these rebates that could encourage people to get a higher education and in turn create more jobs.

With tax season getting ready to start, many people are concerned that their tax returns will decrease.

But according to Perez, its more of stability.

For months, the tax bill has been looming, and now that it is passed, Perez says Americans can now understand their financial future.