Huge Tax Increase Looms at Year-End “Fiscal Cliff”
It would be a $500 billion windfall for the government — but a big hit to the pocketbook of average Americans.
The Tax Policy Center is out with a report that finds that if all of the tax cuts that are supposed to expire at the end of the year are allowed to do so, a typical middle-income family could see its taxes rise by $2,000 next year — while the highest-income Americans could see a tax increase in the six figures.
Among the provisions set to expire are cuts on taxes 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.
(Copyright 2012 by The Associated Press. All Rights Reserved.)