Health & Fitness
Falling Off the Cliff Means Sky-High Taxes for Most
The new report estimates that all in all, 9 in 10 Americans would see their taxes go up if we go over the fiscal cliff.
9 in 10: Americans projected to pay higher taxes post-fiscal cliff
The U.S. elections are over and we are reminded that they come against the backdrop of expiring tax cuts and potential spending reductions, also known as the fiscal cliff. If Congress does not act by January and we go over the fiscal cliff, taxes will increase for the 160 million Americans on payrolls, according to a recent report by the Tax Policy Center. The average household could pay $3,500 more in federal taxes, while the average household in the top 1% could pay $120,000 more. The federal tax rate for households in the top one-percent will climb 7% while households in the bottom income quintile will experience a .7% increase; demonstrating that although the wealthy American population might be most significantly affected by this tax increase, underprivileged Americans will certainly still feel the impact on their wallets. The new report estimates that all in all, 9 in 10 Americans would see their taxes go up if we go over the fiscal cliff. Investors should view this as yet another reason to invest their cash, so that it has the ability to grow over time rather than be diminished by possibly sky-high tax rates.
Sources: BlackRock; Tax Policy Center; The New York Times: "The Tax Side of the
Fiscal Cliff," 10/1/2012
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Prepared by BlackRock
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Delivered courtesy Joel W. Grams, CRPC®, CLTC,
Registered Representative, Financial Planner, 212 Capital Group
38 Main Street Suite 360, Westlake Ohio 44145
(440) 835-4501 Ext 17, jgrams@212capitalgroup.com
The foregoing discussion is general in nature and not intended as specific advice.
New England Financial nor its representatives are engaged in rendering tax,
accounting or legal advice. A qualified professional should be consulted regarding the effect of such considerations on the matters covered in this publication.
For information on New England Financial insurance or other financial products and services, please contact Joel W. Grams, CRPC®, CLTC, Registered Representative, Financial Planner with /New England Financial 38 Main Street Suite 360, Westlake, OH 44145, at (440) 835-4501 ext. 17, jgrams@212capitalgroup.com