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88% Will Face Tax Increase With ‘Fiscal Cliff’

From CNN’s Money.com:

Americans face $3,500 fiscal cliff tax hit

By Jeanne Sahadi | Mon October 1, 2012

NEW YORK (CNNMoney) — American households face an average tax increase of $3,500 if Congress doesn’t act to avert the fiscal cliff, according to a new analysis from the Tax Policy Center.

And bear in mind, the Tax Policy Center is a joint operation run by the Urban League and the Brookings Institute. It is very liberal.

Overall, 88% of households would end up with higher taxes.

That’s because a record number of tax increases — due mostly to the expiration of temporary provisions put in place since 2001 — are set to take effect starting in January.

All told, the center estimates that the fiscal cliff tax provisions would raise an additional $536 billion in revenue next year, or 21% of what the federal government would otherwise collect.

But all of that assumes that everyone will just sit there and take these tax hikes. They won’t shelter their income or move out of the country.

The range of average tax increases is enormous depending on one’s income level.

The top 1% of households, which have incomes above $506,210, would face an increase of $121,000. Within that group, the top 0.1% — those making more than $2.66 million — would get hit with a tax hike of nearly $634,000.

And bear in mind that this is all before we get the "Buffet Rule’ tax increase on the so-called ‘millionaires and billionaires’ who make over $200,000 a year.

By contrast, households making up to $20,113 would see a $412 average increase. That may simply represent a smaller refund to those households, many of which have very little if any federal income tax liability to begin with.

In other words, they won’t pay not pay any more in taxes. They will just get less ‘free money’ back from real taxpayers.

Households in the middle — with total incomes between $39,790 and $64,484 — can expect a roughly $2,000 increase

And this is what passes for ‘fairness’ under Obama.

And bear in mind, this is all before we get the "Buffet Rule’ tax increase on the so-called ‘millionaires and billionaires’ who make over $200,000 a year.

This article was posted by Steve on Tuesday, October 2nd, 2012. Comments are currently closed.

4 Responses to “88% Will Face Tax Increase With ‘Fiscal Cliff’”

  1. River0 says:

    This is exactly what happened in the early 1930’s, when Congress raised taxes dramatically; to a top rate of 63%. Before that, the stock market had recovered much of its losses after the October ’29 crash, but stupid Federal Reserve policy – not lowering interest rates quickly enough in the face of deflation – and tax hikes caused a garden variety recession to become the Great Depression.

  2. captstubby says:

    it looks like the President will need three more terms and a world war to pull us out of our “ended ressesion.

  3. GetBackJack says:

    We went Galt when Obama was elected. That’s all I’m going to say.

    • captstubby says:

      it does appear that the You Didn’t Build It men and women closed the vault and put up a “do not open till 2013”
      post it on it.

      even the cheerleading news media oddly, has not pounced on this obvious fact.
      so it seems that only the President can’t see what makes the world go around.

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