Posted on 01/01/2013 4:39:47 PM PST by MinorityRepublican
The fiscal cliff bill’s impact would be far-reaching for American taxpayers, and particularly painful for very high-income households, according to a new analysis.
About 77% of American households would see a tax increase compared to their 2012 tax levels, according to the analysis by the Tax Policy Center, a joint venture of the Brookings Institution and the Urban Institute.
The biggest impact for most households comes from the expiration of a two-percentage-point payroll-tax break that existed for 2011 and 2012. It basically hits all working people. But the bill also contains sizable tax increases for the wealthy, compared with 2012 levels. (Of course, now that the fiscal cliff has arrived, supporters argue that the legislation actually represents a tax cut, because tax rates technically went up for just about everyone at midnight Monday.)
The average tax increase for U.S. households paying higher taxes would be about $1,635. But that figure is somewhat skewed by the significant tax increases in store for high-income households under the bill. Almost 100% of households with incomes over $500,000 would see a tax increase. For households between $500,000 and $1 million, it would average $15,055. For households with incomes over $1 million, it would average $171,330.
Households making more than $500,000 would see their average effective federal tax rate rise by 2.2 percentage points to 32.1%. Their after-tax income would drop by 3.1%. Households over $1 million would see their average rate rise by 5.2 percentage points, to 38.5%. Their after-tax income would drop by 7.8%.
The Tax Policy Center analysis of federal tax rates includes individual and corporate taxes, as well as payroll taxes and the estate tax, so it’s broader than just the individual income tax.
(Excerpt) Read more at blogs.wsj.com ...
Good. Obama is a SUPERSTAR!
It basically hits all working people.......
They are all Washington Incestuous scum.
We must kick them ALL OUT. They passed thousands of new Regulations ....but cant balance the budget.
They raise the taxes and spending.....They are all Traitors.
We can’t hit this cliff fast enough or hard enough.
It is the only hope for our country.
This is clearly Bush’s fault. If it weren’t for the blighted “Bush tax cuts”, there would be no tax increases, when they expire. The Bush tax cuts were totally useless, when Bush was in office. Now, they are absolutely essential.
The two-percentage-point payroll-tax break was just a gimmick for Obama to buy votes by giving a tax break to people who didn’t pay income tax. It comes directly out of the SS slush fund...
The “payroll tax cut” was bogus anyway...it was a cut in FICA, which means it basically took money out of the Social Security fund.
Obama wanted to destroy Social Security, too. He sold it as a “tax cut”, when it was really robbing the fund that helps retirees, etc.
Social Security should be privatized, but until it is, it ought to be fixed...but Obama made that problem more difficult.
Perhaps all of us taxpayers should wait until the last minute, not filing a tax return but filing for an extension on the deadline. Stretch out not paying our taxes until as late as possible. Let's break the backs of these beasts.
bttt
Sorry, but even if you file an extension, you do have to pay any estimated tax you owe. If you will owe tax and don't pay it by April 15 (or the date of your quarterly payment), you WILL be hit by interest and penalties.
The government is willing to wait for their paperwork, as long as you're willing to fill out MORE paperwork, but NOT for "their" (really YOUR) money!
Mark
They NEED to be punished......
Members of the house and the senate got a raise.
It’s time to label BO and make it stick somehow, although hard without any media support. So sick of them painting the Republicans a certain way and it sticks. Time to name BO as the biggest tax raiser in American history and connect it to him and his family personally. More funding for their vacations etc.
Most of them voted for Obammie, so let them pay for it! Of course any tax increase will be blamed on the Republicans.
All the analysis focuses on INCOME tax rate changes and ignores the huge increase in CAPITAL GAINS taxes and the Obamacare tax of 3.8% on the sale of your residence. People who don’t have corporate pensions and have saved and invested all their lives for retirement are going to be screwed. People who invested in real estate in certain appreciating markets in the US are going to be totally screwed out of a good part of their gains. You are screwed out of a good chunk of the gains on your primary residence when you sell and downsize.
Lifetimes of financial planning under a reasonably fixed set of investment rules are now PFFT! Up in smoke. Seniors with decent savings are going to have to figure out how to deal with losses of hundred thousand or more dollars.
One thing’s for sure — those kids who voted for the communist are going to get less inheritance.
I just whacked Corker and Alexander from TN. If they can’t block Bronco I quit.
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