Wednesday, January 2, 2013

AP- Despite 'Cliff' Deal's Cuts, Your Taxes Are Going Up

Suckers!
While the tax package that Congress passed New Year's Day will protect 99 percent of Americans from an income tax increase, most of them will still end up paying more federal taxes in 2013.

That's because the legislation did nothing to prevent a temporary reduction in the Social Security payroll tax from expiring. In 2012, that 2-percentage-point cut in the payroll tax was worth about $1,000 to a worker making $50,000 a year.

The Tax Policy Center, a nonpartisan Washington research group, estimates that 77 percent of American households will face higher federal taxes in 2013 under the agreement negotiated between President Barack Obama and Senate Republicans. High-income families will feel the biggest tax increases, but many middle- and low-income families will pay higher taxes, too.
Annual income: $20,000 to $30,000


Average tax increase: $297

Annual income: $30,000 to $40,000


Average tax increase: $445

Annual income: $40,000 to $50,000


Average tax increase: $579

Annual income: $50,000 to $75,000


Average tax increase: $822

Annual income: $75,000 to $100,000


Average tax increase: $1,206

Annual income: $100,000 to $200,000


Average tax increase: $1,784

Annual income: $200,000 to $500,000


Average tax increase: $2,711

Annual income: $500,000 to $1 million


Average tax increase: $14,812

Annual income: More than $1 million


Average tax increase: $170,341

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