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How Looming Tax Hikes Would Hit Typical Families

How looming tax hikes would hit typical familiesA variety of tax cuts enacted during the tenures of Presidents George W. Bush and Barack Obama expire at the end of December. Expiring provisions include Bush-era cuts on wage and investment income and cuts for married couples and families with children. Also expiring is a 2 percentage point temporary payroll tax cut.

A look the tax increases facing typical families:

-A married couple with two children and an income of $100,000 would pay $7,935 in income taxes and $5,650 in payroll taxes this year, for a total federal tax burden of $13,585. Next year, they would face income taxes of $11,919 and payroll taxes of $7,650, for a total federal tax burden of $19,569, a total tax increase of $5,984.

-A married couple with no children that makes $60,000 (each spouse earns $30,000) would pay $5,105 in federal income tax for 2011. Their income taxes would rise to $6,308 next year and their payroll taxes would rise from $3,390 in 2011 to $4,590 in 2012.

-A single mother with three children and an income of $40,000 would benefit from the earned income and refundable child tax credits to receive a tax refund of $2,626 for 2011 and pay payroll taxes of $2,260 for a total federal tax burden of -$366. Under higher rates in 2013, she would owe $183 in income taxes and pay $366 more in payroll taxes.

-A married couple earning $200,000 (one spouse earns $150,000, the other $50,000) would see their income tax bill jump almost $6,000 (from $34,587 to $40,545) and their payroll taxes rise $3,358 ($9,742 to $13,000).

-A married couple earning $1 million faces income taxes of $311,344 for this year. That would jump to $354,224 next year at a maximum rate of 39.6 percent. They would pay almost $4,500 more in payroll taxes.

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Source: Tax Foundation

On the Web: http://interactive.taxfoundation.org/taxcalc/#calculator

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ilm9p

Yep, tax hikes for the working families. All the while all the dirty animals who make a career of being on welfare in this Country continue to get everything for free. This filth that sits around in free Section 8 housing with free utilities, free Cable TV, free food, free healthcare, free everything all the while crapping forth 3 or 4 kids from different fathers. That's the vermin that every hard working decent American is called on to support.

October 03 2012 at 8:50 AM Report abuse rate up rate down Reply
ha6ai

Just remember WHO it was and is WHO refuses to negotiate in good faith - OBAMA and Harry REID - the "Progressive" DEMOCRATS, who would rather PUNISH THE MIDDLE CLASS for their own corrupt partisan politics.

Obama has declared WAR ON THE MIDDLE CLASS.

He would rather punish a few job creators than CONTINUE THE BUSH TAX CUTS FOR EVERYONE!

He says "not God Bless America" ... God Damn the Middle Class.

So now Obama's chickens have come home to roost.

All that Obama has to do is give in!!! Stop punishing America's middle class to pursue your class warfare!

Communism is not the answer!

October 03 2012 at 6:09 AM Report abuse +1 rate up rate down Reply
Bruce

Just remember WHO it was that refused to negotiate in good faith on an agreement that would have prevented the "auto-sunsetting" of the tax guidelines: that's right, your BEST BUDDIES, the Party of No. (That's the GOTP, for those who haven't been listening.)

Wanna bet how fast they are going to try to distance themselves from this horrendous mess that THEY refused to deal with? They must not be permitted to get away with it. SAY IT LOUD, and SAY IT OFTEN.

October 03 2012 at 2:23 AM Report abuse -1 rate up rate down Reply
barryaclarke

So many people in congress say that raising the taxes on the rich would not bring in much additional revenue. I remember reading on AOL that The top 400 Americans make more than half of all Americans combined. If this is true, then of our 535 lustrously voted politicians are just protecting their money and telling the American taxpayer to go screw themselves. I agree with President Obama, we “really need change“ in Novermber..............

October 03 2012 at 1:58 AM Report abuse -1 rate up rate down Reply
Bill

Lot of dumb comments on this issue. Let's not forget Obama could fix the problem with the "filthy rich" why doesn't he????

October 03 2012 at 12:38 AM Report abuse +1 rate up rate down Reply
Richard

39.5% for a couple making $200K, while millions of multi-millionaires like Romney and thousands of billionaires like the Walton's pay well under 15%. Now that is simply outrageous and unacceptable. Then these incredibly greedy wealthy elite people ship our jobs overseas, and champion the illegal immigrants so as to drive down the wages and benefits of American workers, all to line their pockets with even more money than they will never get to spend. Now I understand the real meaning of filthy rich.

October 02 2012 at 11:53 PM Report abuse rate up rate down Reply
1 reply to Richard's comment
clayton434

The 15% represents the 2nd tax on the same money. Hard for some to comprehend???
A business earns a dollar, pays 35% income tax passes the remining 65% to the business owner
and the business owner pays 15% on the remaining 65cents. The Govt gets 47% the millionaire gets 53%
and the democrats tell te public the millionaire is not paying his fair share

November 05 2012 at 11:26 AM Report abuse rate up rate down Reply
dencuddy

Typical family making $200,000 a year? What bull!

October 02 2012 at 7:32 PM Report abuse +1 rate up rate down Reply
missmymind2353

I THINK WE NEED TO DEFINE WHAT A TYPICAL FAMILY IS.

October 02 2012 at 7:16 PM Report abuse +4 rate up rate down Reply
thedukeoforange2

THE GREED AGENDA
The oil tycoon Koch Brothers, and other mega-billion special interests have spent decades funding dozens of front groups in pursuit of their agenda. These front groups seek huge tax breaks for these special interests, while making it harder for middle class Americans to achieve the American Dream. This multi-year effort is called THE GREED AGENDA.

1.Give More Tax Breaks to the Super Rich
2.Privatize Social Security and Medicare
3.Suppress Voting Rights for Working and Middle Class Families
4.Cut Funding for Public Schools In Favor of For-Profit Education
5.Roll Back Consumer Protections and Important Regulations On Wall Street and Big Banks
6.Lower Wages for Middle Class Families
7.Eliminate Workers’ Rights
8.Block Pay Equity and Health Care Equity For Women.
9.Continue Special Giveaways to Super-Rich Oil Companies
10.Privatize Firefighting and Important Public Services
11.Cut Funding for Veterans’ Services
12.Protect Special Interest Polluters From Common Sense Regulations, Even If It Increases the Risk of Cancer and Other Fatal Illnesses

October 02 2012 at 5:59 PM Report abuse -1 rate up rate down Reply
2 replies to thedukeoforange2's comment
thedukeoforange2

The Koch brothers are one of Mitt Robme's biggest campaign donors. You think the republicans are for the middle class? You better think again!

October 02 2012 at 6:01 PM Report abuse +2 rate up rate down Reply
Dave &/or Trisha

You're too funny! You rail about the Koch Brothers; what about your hero (and probably employer) George Soros? Stop with the demonrat talking points. No body believes them, not even likely you.

October 02 2012 at 7:19 PM Report abuse rate up rate down Reply
Missy

Why be married? The deductions are insane! I worked my ass off for my degrees!!!!!!!! I'm going to file for divorce and work the system in reverse - less taxes for a single parent! (without welfare) -
I'm not working for free to sustain someone else's family - I give my share to charities. I shouldn't be forced to pay it out to welfare.

October 02 2012 at 5:53 PM Report abuse +1 rate up rate down Reply
5 replies to Missy's comment