The AP has a story this morning detailing just what will happen to Americans if recent tax cuts, including those put forward during the Bush era, are not extended by Congress, one part of a fiscal cliff that could have devastating effects on our economy. In short, prepare to start giving more of your money to the government if something isn’t done soon.
From the Associated Press:
A typical middle-income family making $40,000 to $64,000 a year could see its taxes go up by $2,000 next year if lawmakers fail to renew a lengthy roster of tax cuts set to expire at the end of the year, according to a new report Monday
Taxpayers across the income spectrum would be hit with large tax hikes, the Tax Policy Center said in its study, with households in the top 1 percent income range seeing an average tax increase of more than $120,000, while a family making between $110,000 to $140,000 could see a tax hike in the $6,000 range.
Taxpayers across the income spectrum will get slammed with increases totaling more than $500 billion – a more than 20 percent increase – with nine out of 10 households being affected by the expiration of tax cuts enacted under both President Barack Obama and his predecessor, George W. Bush.
You can get all of the details by reading the full report from the Tax Policy Center including information about the hike in tax by income. The potential increase in tax for most Americans will be a devastating burden that will not only decrease household take home pay but will likely mean less money to spend on goods and services sending a further shock to our economic system.