facebooktwitterRSS
- Advertisement -
  • Most Commentedmost commented up
  • Most Emailedmost emailed up
  • Popularmost popular up
- Advertisement -
 

« News Home

Fiscal cliff deals means taxes will rise for most Americans



Published: Wed, January 2, 2013 @ 12:55 p.m.

WASHINGTON (AP) — Most Americans will pay higher federal taxes this year, even though the tax package Congress passed New Year's Day will protect 99 percent of Americans from an income-tax increase.

About 77 percent of American households will face higher federal taxes in 2013 under the agreement negotiated between President Obama and Senate Republicans, estimates the Tax Policy Center, a nonpartisan Washington research group.

That's because even though just one percent of households will pay higher income taxes, an increase in federal payroll taxes will hit nearly every wage earner, the Tax Policy Center says.

Households earning between $40,000 and $50,000 a year face an average tax increase of $579 in 2013, according to the Tax Policy Center's analysis. Households making between $50,000 and $75,000 a year face an average tax hike of $822.

The reason: the legislation does not prevent the expiration of a temporary reduction in Social Security payroll taxes. Last year, a 2 percentage-point temporary cut in federal payroll taxes was worth about $1,000 to a worker making $50,000 a year.

"For most people, it's just the payroll tax," said Roberton Williams, a senior fellow at the Tax Policy Center.


Comments

1georgejeanie(731 comments)posted 1 year, 3 months ago

More taxes, more spending, where are the cuts? Just kicking the can down the r0ad. The non producers inthis country could care less about the debt. They just keep on eating at the government trough. Sooner or later the , yiou know what is going to hit the fan.

Suggest removal:

276Ytown(1150 comments)posted 1 year, 3 months ago

Stopping our country's out of control spending or reducing this nation's debt. is not going to happen under this administration. Obama got his "tax the rich", no spending cuts and next....raise the debt ceiling.

The Senate voted on the 154 page fiscal cliff bill within 3 minutes of receiving it. They never even read it! The bill includes several provisions that are unrelated to the fiscal cliff, including repealing a section of ObamaCare, extending the wind-energy tax credit,
$430 million for Hollywood through “special expensing rules” to encourage TV and film production in the United States. Producers can expense up to $15 million of costs for their projects.

$331 million for railroads by allowing short-line and regional operators to claim a tax credit up to 50 percent of the cost to maintain tracks that they own or lease.

$222 million for Puerto Rico and the Virgin Islands through returned excise taxes collected by the federal government on rum produced in the islands and imported to the mainland.

$70 million for NASCAR by extending a “7-year cost recovery period for certain motorsports racing track facilities.”

$59 million for algae growers through tax credits to encourage production of “cellulosic biofuel” at up to $1.01 per gallon.

$4 million for electric motorcycle makers by expanding an existing green-energy tax credit for buyers of plug-in vehicles to include electric motorbikes.

Speaking after winning a "fiscal cliff" victory, President Barack Obama vowed on Tuesday to avoid a repeat of last year's divisive fight with Congress over an extension of the nation's borrowing authority.

"While I will negotiate over many things, I will not have another debate with this Congress about whether or not they should pay the bills they have already racked up,"

Maybe he just wants to party like it 's the end of the world. Oh, does he know something we don't know? Hopefully we still have a line of credit with China so that those EBT cards don't stop working.

Suggest removal:


News
Opinion
Entertainment
Sports
Marketplace
Classifieds
Records
Discussions
Community
Help
Forms
Neighbors

HomeTerms of UsePrivacy StatementAdvertiseStaff DirectoryHelp
© 2014 Vindy.com. All rights reserved. A service of The Vindicator.
107 Vindicator Square. Youngstown, OH 44503

Phone Main: 330.747.1471 • Interactive Advertising: 330.740.2955 • Classified Advertising: 330.746.6565
Sponsored Links: Vindy Wheels | Vindy Jobs | Vindy Homes | Pittsburgh International Airport