Thursday, December 27, 2012

Hard working American families would be almost $400 worse off a month if the U.S. falls over the fiscal cliff

With time running out for lawmakers in Washington D.C. to reach a deal on the looming fiscal cliff, every hard working American is staring down the barrel of a combined $536 billion tax hike.
 
Monday is the deadline for a resolution between the White House and the House of Representatives and if that is not reached then middle income American families will be hit hardest - losing upwards of $4,603 a year for a couple whose household earns $100,000.

That would leave married Americans almost $400 a month worse off and with high gas prices and a fragile economy only starting to show green shoots of recovery, it could be catastrophic not just for the U.S. but for the wider global economic health.
The fiscal cliff tax burden for married people is shown here in this graph
The fiscal cliff tax burden for married people is shown here in this graph
This chart shows a snapshot of how single people in different income groups will be affected by the U.S. stepping off the fiscal cliff
This chart shows a snapshot of how single people in different income groups will be affected by the U.S. stepping off the fiscal cliff
Indeed, no American would escape the terrifying prospect of large tax rises, should the George W. Bush era tax cuts be allowed to expire.

A single American earning $50,000 would lose $1,128 off their yearly salary, as their effective tax rate rises from 18 percent to 21 percent. POST

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