Fiscal Cliff: What It Will Cost You In Increased Taxes
BOSTON (CBS) – One thing is for certain, if lawmakers don’t reach a deal to avoid the fiscal cliff on January 1, everyone’s taxes will go up.
According to the non-partisan Tax Policy Center, if you make $49,000 a year, you would have to pay an extra $1,900 a year in taxes.
Step up into the $80,000 income bracket and you’ll be taxed an additional $3,500 a year.
And the numbers grow as your income rises.
A family income of $178,000 a year will get tapped for an additional $14,000 in taxes.
However, not all states would bear an equal burden if these taxes are hiked.
In fact, taxpayers in Massachusetts and New Hampshire would be among those most heavily impacted.
That’s because we are in high income states, according to the Tax Foundation.
Almost every tax cut enacted since 2001 would expire, including the biggest one.
“The Bush tax cuts. There’s five or $600 million that could disappear. That’s going to have a high impact on just about everybody,” financial analyst David Caruso told WBZ-TV.
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An even bigger concern is consumer spending, which makes up almost 70-percent of our economy.
If people have less to spend, economists fear that we could fall back into another recession.
CBSBoston.com will have an expert on call for a live Q&A Monday through Friday from 5:30 – 6:30 p.m. to answer your questions about the fiscal cliff.
The series “Inside the Fiscal Cliff” airs all week at 5 and 11 p.m. on WBZ-TV and at 5:55 a.m., 8:55 a.m., 12:21 p.m., and 4:55 p.m. on WBZ NewsRadio 1030.