End of Bush Tax Cuts Will Affect All Demographics, Income Earners
(CNSNews.com) – If the Bush tax cuts expire on Jan. 1st, individuals of all demographics and income brackets will experience tax increases, according to a June report from the conservative Heritage Foundation.
“On January 1st, 2013 a $494 billion wave of tax hikes will take effect, hitting every American household, regardless of income,” according to a Heritage infographic from June 11th.
Currently, House Speaker John Boehner and President Obama are in talks to avert the ‘fiscal cliff’ when Bush tax cuts expire and sequestration takes effect.
On Thursday, the House failed to pass Boehner’s “Plan B” proposal, which would have increased tax rates on all those making $1 million or more.
Heritage utilized Census and IRS data to determine tax increases if Congress lets the Bush tax cuts expire, compared with what individuals are currently paying.
In a report entitled “The Cost of Taxmageddon: Impact by State and Congressional District,” author William W. Beach broke down the dollar amount of taxes citizens in each state and congressional district will have to pay.
Of the 50 states, California will experience the largest tax hike, at $61,852,511,863.
Researchers provided tax figures for 5 different groups: families, baby boomers, low-income workers, millennials and retirees.
Here are the tax increase dollar amounts for each group:
Families, Average Income $70,662: $4,138 tax increase.
Baby Boomers, Average Income $95,099: $4,223 tax increase
Low Income Workers, Average Income $24,757: $1,207 tax increase
Millennials, Average Income $23,917: $1,099 tax increase
Retirees, Average Income $42,553: $857 tax increase