Wednesday, January 2, 2013

How Your Taxes Will Increase Under the 'Fiscal Cliff' Deal

The nonpartisan Tax Policy Center estimates that 77% of Americans will see higher taxes because of the elimination of the payroll tax cut, meaning $115 billion less in disposable income, reports LaTi..

The payroll tax cut helped Americans put more of their incomes in their pockets in 2011 and 2012, and before that, the Making Work Pay tax credit gave relief to workers in 2009 and 2010, Joe Rosenberg, a research associate at the nonpartisan Tax Policy Center. told LaTi.

And “2013 will be the first year there’s not stimulus-related targeted tax relief for individuals,” he said.

A household making $50,000 to 75,000 a year will make $822 less this year than last year, according to Rosenberg’s calculations. Those making $75,000 to $100,000 will see $1,206 less in their paychecks, while those making $200,000 to $500,000 will see a drop of $2,711 in their paychecks.

Workers making $500,000 to $1 million will see a drop of $14,812 in their paychecks, more than $1,000 a month.

1 comment:

  1. Only 77%? The other 23% must rely solely on some form of government assistance rather than a job...