Senate-Passed Deal Means Higher Tax on 77% of HouseholdsBy Richard Rubin
Jan. 02, 2013
1.Trump is Right: GOP Debate Audience is Packed Full of Republican Donors
2.Caught On Camera: Preacher Cited by Officer Because It's "Illegal to Offend People"
3.Man Says He Was Fired After Pulling Gun in Gun-Free Zone to Save Woman's Life
4.Ticketing For Profit So Rampant, State Lawmakers Forced to Take Action -- Cops Are Furious
5.75-Yr-Old German Grandmother Tells of Sexual Harassment by Migrants, Interview Gets Interrupted by Clueless "Integrated" Muslim Teens
6.EPA Rule to Ban Car Modification
7.FOX Con-Artists Use Unnecessary Censorship To Make Trump Sound Like He Said 'F*ck'
8.Drug Dogs Don't Even Have to Be Right Half The Time to Be Considered 'Reliable' by The Courts
The budget deal passed by the U.S. Senate today would raise taxes on 77.1 percent of U.S. households, mostly because of the expiration of a payroll tax cut, according to preliminary estimates from the nonpartisan Tax Policy Center in Washington.
More than 80 percent of households with incomes between $50,000 and $200,000 would pay higher taxes. Among the households facing higher taxes, the average increase would be $1,635, the policy center said. A 2 percent payroll tax cut, enacted during the economic slowdown, is being allowed to expire as of yesterday.
The heaviest new burdens in 2013, compared with 2012, would fall on top earners, who would face higher rates on income, capital gains, dividends and estates. The top 1 percent of taxpayers, or those with incomes over $506,210, would pay an average of $73,633 more in taxes.
Much of that burden is concentrated at the very top of the income scale.
The top 0.1 percent of taxpayers, those with incomes over about $2.7 million, would pay an average of $443,910 more, reducing their after-tax incomes by 8.4 percent. They would pay 26 percent of the additional taxes imposed by the legislation.
Among households with incomes between $500,000 and $1 million, taxes would go up by an average of $14,812.