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Most Americans will have to pay a ton more in taxes if the tax hike takes place at the end of the year. The nonpartisan Tax Policy Center has released a report detailing the damage. Resource for this article:

https://personalmoneynetwork.com/



Fiscal cliff a problem



The nearing <a href="http://personalmoneynetwork.com/moneyblog/2012/09/06/u-s-competitiveness-ranking/">fiscal cliff</a> might be a huge problem. The typical household will pay an additional $3,500 in taxes during the year if something is not done, according to the report.



The report said:


"The fiscal cliff threatens an unprecedented tax increase at year end."



Too many tax conditions around



There are way too many temporary tax provisions that are snowballing together, according to the director of the Tax Policy Center, Donald Marron.



One huge issue is that the Bush era tax cuts are expiring at the end of the year. Pushing it off the ledge is the truth that $109 billion in <a href="https://personalmoneynetwork.com/personal-loans/">spending</a> cuts will even end this year.



The debt ceiling argument last year led to the automatic spending cuts. The “super committee” never discussed how you can deal with the debt in our country.



The soon-to-expire provisions consist of President Obama's two percentage point temporary payroll tax cuts. Also on the year-end chopping block are Bush-era tax breaks on wage and investment income for wedded filers who have children. Should that end, the tax credit per kid will be cut in half, from $1,000 to $500.



Americans see more tax boosts



About 90 percent of Americans will have to deal with tax hikes if legislators do not affect the events.



In 2013, anyone making anywhere from $40,000 to $64,000 will see a $2,000 increase in taxes if nothing is done. Another $14,000 will be needed for those who make $108,000 or more.



A family earning $110,000 will pay higher taxes of around $6,000. The highest-earners -- the so-called one percent -- will be paying an average of $120,000 more.



Tax cut reversal and capital gains taxes will cost the top earners much more money in taxes, which is something low income earners do not have to worry about usually. Of the $500 billion in extra revenue for the government if the tax breaks end, 60 percent will come from the top 20 percent of earners.



Can result in brand new recession



Economists are warning lawmakers about the taxes since the end of the year tax increase might trigger another recession in the country.



Sources



<a href="http://www.google.com/hostednews/ap/article/ALeqM5hAuTOkxqz9e41LzDawRdp423MYSQ?docId=9daf8a6d27764f86a80ce0a8dfc81562">Google</a>

<a href="Biz http://www.bizjournals.com/sanjose/blog/2012/10/new-study-forecasts-unprecedented.html">Silicon Valley Biz Journal</a>

<a href="http://www.dailyfinance.com/2012/10/01/how-looming-tax-hikes-would-hit-typical-families/">Daily Finance</a>

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