POSTED: Monday, December 17, 2012 - 7:00pm
UPDATED: Tuesday, December 18, 2012 - 9:08pm
While elected officials scramble to determine how they will cope with deep cuts to government programs that accompany sequestration, the Tax Policy Center issued a report in October that paints a grim picture of how going over the cliff would affect personal income.
“Taxes would rise by more than $500 billion in 2013 — an average of almost $3,500 per household,” the report stated.
Almost every tax cut enacted since 2001 would expire, according to the report titled “Toppling off the fiscal cliff: Whose taxes rise and how much?”
Some of the findings in the study include:
Middle-income households would see an average tax increase of almost $2,000 a year.
Almost 90 percent of Americans would see their taxes rise.
The estate tax would hit more than 10 times as many estates as it will in 2012.
The 2 percent cut in the payroll tax rate would lapse, increasing taxes on more than 120 million households with workers.
Read more here.