Report: 90 percent of Americans to face higher taxes if Congress doesn’t act on fiscal cliff

[alp227]

Source: Washington Post

Nearly 90 percent of Americans would face higher taxes next year if Congress permits the nation to hurtle over the “fiscal cliff,” the year-end precipice of tax hikes and spending cuts that threatens to throw the nation back into recession.

A study published Monday by the nonpartisan Tax Policy Center finds that taxes would go up by a collective $536 billion next year, or about $3,500 per household, reducing after-tax income by about 6.2 percent.

But the impact would vary significantly by income level, the study found, ranging from a $412 jump for the lowest earners (a reduction of 3.7 percent in after-tax income) to $120,000 for the top 1 percent (a bite of 10.5 percent). Middle-income households — those earning between $40,000 and $65,000 a year — would see their taxes go up by an average of $2,000, the study found, leaving families with 4.4 percent less money to spend.

For most taxpayers, the bulk of the increase would be triggered by the scheduled expiration of tax cuts enacted in 2001 and 2003 during the George W. Bush administration. The expiration of President Obama’s payroll tax holiday, which shaves 2 percentage points off payments to Social Security, comes in a close second.

Read more: http://www.washingtonpost.com/business/economy/americans-would-pay-536-billion-more-in-taxes-if-congress-doesnt-act-on-fiscal-cliff-report-says/2012/10/01/e5e0635a-0bdc-11e2-bb5e-492c0d30bff6_story.html

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Thom Hartmann debated Curtis Dubay of Heritage Foundation about "Taxmageddon" back in April:

Cenk Uygur also has a good analysis of Taxmageddon:

[bamacrat]

1. And of course they won't then blame Obama for increased taxes..

And they stupids in this country who don't follow the news other than RW radio. This needs to be talked about by Obama, MSM everyone so that when this happens the blame will be attributed properly.

[formercia]

2. Tax the Rich

Time to Harvest. Let them see how it feels to be on the other end of the stick.

These are not Tax increases, but simply the expiration of a Tax Holiday. Don't use Reich-Wanker Talking Points.

[FiveGoodMen]

9. Feed the poor

'til there are no
rich no more.

[joycejnr]

3. I say we go back to the 60s...

...when JFK dropped the top rate to 72%. Maybe with an ad valorum tax like Britain used after World War II - we need to recapture the cash the greediest of the wealthy stole from the rest of us. Slate had an excellent article: http://www.slate.com/articles/news_and_politics/history_lesson/2004/01/tax_cuts_in_camelot.html

[Skink]

4. Gas will probably go down

[Viva_Daddy]

5. Not to worry.

The "New Congress" will act aggressively to correct this after January 5th. The "Off the Cliff" meme was meant to scare Democrats into caving in to Republicans but we're not going to buy their "junk".

[maxsolomon]

6. Because the irresponsible Bush Tax Cuts will finally Sunset

and the Payroll tax cut will end.

This NEEDS to happen if we actually care about the deficit and the national debt. And if we add in cuts to the DoD 10X larger than those that constitute the "fiscal cliff", we might actually get somewhere.

[woolldog]

7. As a small business owner

I'm extremely worried about what will happen to the economy if Congress and the President don't get their act together and fix this before the end of the year. Not doing so could lead to another recession.

[shiningseas1971]

10. I'm also a small business owner

I'm also worried about the economy. I have a really small business. I can't even afford any employees right now, except my sister and I. According to the law I Have to Have at least one employee at all times. Since only my sister and I work here, that is all we have. Now, the taxes right now are outrageously high on just one employee. So high in fact that we got behind on some and its now being taken out (forcefully) of our bank! What I what to know is, What is the President going to do for us business owners. Ya'll talk about people making more money giving their fair share, what if a business like mine isn't even making enough to pay us minimum wage. I Want to Vote for Obama, but what am I supposed to do here? This is my only source of income and there ARE NOT any jobs in my part of the state. Is my family supposed to starve cause according the DHS, we make too much for any help. Apparently, we will still make too much under the new income guidelines for medical and food help. Sighs, I am just trying to make heads or tails here guys. Some feedback would be much appreciated.

[DURHAM D]

11. Help me understand.

What state are you in and who is requiring you to have an employee? Are you talking about federal or state requirements.

What type of taxes are you saying are outrageously high? State or federal or county?

Why are your funds being garnished? Is it by the state or the feds? Did you fail to pay taxes in prior years?

[shiningseas1971]

13. In Michigan

My business is in Michigan. We are required by, I don't know who, to have one of us owners as an employee at all times. Not sure if its state or federal. The accountant, who takes care of that, told us about the requirement. I know this is true because when I worked at at my last job the owner told me the same thing. With only one employee at any one time, for both federal and state, we are still paying off Federal and State income taxes from this year and last year. We don't have county taxes here. The funds are being garnished because we can't keep up with paying our income taxes, both Federal and state. Even if we were not behind on the income taxes, they are still high considering that there is only one employee at a time. I know that our Federal taxes are higher than the state income taxes. I know that a stimulus was passed by the President at one point but, I don't know when that was. All I know is that, the stimulus didn't do anything to help my kind of business. Even though our sales have been better, we are still behind on all bills. We aren't as behind as before, but its to a point that we have to sell. I have almost lost faith in EVERY POLITICIAN.

[GeorgeGist]

14. Frankly ...

you don't seem to know enough to be a successful businessperson.

[2Design]

8. let it happen - I am willing to pay a little more so the rich pay a lot more

[Comrade_McKenzie]

12. Not good for the people living paycheck to paycheck. nt

[slackmaster]

15. Stop the wars

They're costing us way too much money, and they're not paying any dividends.