If President Obama gets his wish and no fiscal cliff deal is struck by January 1, 2013, you will pay more of your money to the federal government. The table below breaks down how much more you can expect to pay.
President Obama and the Democrats promised not to raise taxes on anyone making less than $250,000 per year. Pitching America over the fiscal cliff would clearly violate that promise.
Note that the numbers below spell out how much more you will be paying, over and above what you are already paying in taxes to the federal government, as well as the local and state taxes that you already pay.
|
Income Level |
New Taxes Owed |
|
Under $10,000 |
$217 |
|
$10,000 to $20,000 |
$537 |
|
$20,000 to $30,000 |
$1,064 |
|
$30,000 to $40,000 |
$1,417 |
|
$40,000 to $50,000 |
$1,729 |
|
$50,000 to $75,000 |
$2,399 |
|
$75,000 to $100,000 |
$3,688 |
|
$100,000 to $200,000 |
$6,662 |
|
$200,000 to $500,000 |
$14,643 |
|
$500,000 to $1,000,000 |
$38,969 |
|
Over $1,000,000 |
$254,637 |
Source: The Tax Policy Center.
We are getting hosed for 2012 tax year as well. Congress did not pass a AMT patch for 2012, which means A LOT of people will be getting hit with AMT. Per the Tax Policy Center, over 80% of households with income over $100k will get hit with AMT this year if no patch is passed.
As one who has been subject to the AMT for many years, forgive me for not being properly sympathetic to your plight. The AMT has been used as just another technique to isolate a small group of taxpayers from the rest and sock it to ‘em.
I always thought that if Congress ever made it apply to those making, say $100K, the resulting revolt would sweep the whole thing away.
You are getting your wish in part. About 45% of those $75k to $100k income range will be hit with AMT for tax year 2012.
Does the chart above include the effect of the AMT on current and new taxes?
It isn’t the extra taxes that will kill the USofA: it is the continuing growing kudzu of regulation that is bringing down America.
Regulation is driven by the multitude of ‘professionals’ who are crowding the government jobs that are financed by the borrowed money organized by the Fed.
So I have a dumb question.
This applies to next year income right? Not my bill for this year when I file. Am I wrong about that? Or is last years income on the table?
That is what i thought but news articles do not help. I am planning now because I am at one of these breakpoints. All of my income is earned taxable. I am at a point where the extra risk and effort will not be worth it if tax goes up much more. I can trade off satisfaction of life over income and plan for the future if I had some idea about what is really on the table.
It will start coming out of your withholdings from your paycheck starting with your first paycheck in January, 2013. To figure out how much, divide the number in column 2 by the number of pay periods you have per year, then subtract that from your current net pay, as in, what your pay stub from your last payday says.
I’m not implying that anyone is stupid. Just laying it out there for anyone who cares to do the math.
Also, read this: http://www.nationalreview.com/articles/335398/regardless-you-ll-pay-more-michael-tanner#
– you, but what it will cost our country. (So even if you dutifully paid estimated taxes each quarter, you will be retroactively punished for underpaying?)
Let’s go over the cliff and see every politician scramble to make up excuses on why they did not want this to happen and it is not their fault. Both parties are at fault. Maybe then the average American will see that these politicians only care about getting elected and living high on OUR money. It’s time to make real changes and get people who care about our country in those positions.
LOL, we are all Greeks now….. “I don make nottoin’”
Tax that. And BTW… give me.
Well put Fantom. I am with you since retirement but I mourn for the America that is now. What will it take to wake up our fellow countrymen?
The rest of the country does not care, they have their obaMAO phone. that’s all that matters.
If anyone actually thinks Feckless Won even cares about taxes going up on all of us – think again. He cares about increased tax load like he cares about your utility bill – like he cares about whether you can even find a job – like he cares that —- well you get the idea. He just don’t care. The only way he’ll do anything is if the resulting action on his part will make him look good. Its all about him after all.
Ya can’t change stuck on stupid.
He is not stupid. Things are going just the way he wants them. He is a socialist/communist. He wants to be dictator and is rapidly getting there. If Congress opposes him ( the House, not the Senate) he will simply go around them with executive orders. The only solution to that is for Congress to never adjourn. Don’t count on that; they want to go home to campaign. We have had it; it will take generations to regain our republic, if we ever do. Our country as we have known it is over.
Well, if it’s any consolation, that 47 percent who were free riding now have to pay some direct taxes. If the republicans had any gonads they’d freeze the debt limit at the current level and tell treasury to make due with the current revenue stream and roll over any bonds that come due. If they have any problems making interest payments, there’s that 11 trillion in gold bullion the feds can use for interest payments only. Enjoy.
Sen. Rand Paul (R-KY) has introduced a new FY 2013 budget. Unlike his last effort, which cut exclusively — though deeply — from discretionary spending in order to show much could be cut without touching entitlements, this one includes some entitlement reforms. Paul claims his budget: Reduces federal spending by $11 trillion relative to President Obama’s budget Balances in five years, within the balanced budget amendment window supported by all 47 Senate Republicans Achieves a $111 billion surplus in FY 2017 Eliminates four Cabinet-level departments (Energy, Education, Commerce, and Housing and Urban Development) while privatizing the TSA Freezes foreign aid at $5 billion a year Reduces most discretionary spending to 2008 levels.
Rand Paul Unveils Latest Budget Proposal By W. JAMES ANTLE, III on 3.8.12
http://spectator.org/blog/2012/03/08/rand-paul-unveils-latest-budge
If going over the fiscal cliff means obama cannot raise the debt limit at his “whim”, then let’s go over the cliff. He’s got enough “Hugo Chavez” power now.
You got it. Washington D.C. is now in the hands of gangland Chicago (marxists, thugs, con artists, etc.). Once they defeat the Republicans in the House, it’ll get ugly real fast. A supreme court justice or two and you can stick a fork in it, America’s done.
Stroke of the pen, law of the land. Kinda cool. Hillary would have brought an Arkansas flavor to 1600 Pennsylvania Ave, otherwise, no difference. Ever notice how nobody ever has to answer for anything? Now THAT’S counter-culture. The Sixties have arrived, baby, and they are The Man, man. Hugo Chavez would be lucky to drive this Magic Bus.
HERE’S A LIST OF TAX HIKES FEES COMING WITH OBAMACARE NEXT YEAR Posted on December 25, 2012
http://www.theblaze.com/stories/heres-a-list-of-tax-hikes-fees-coming-with-obamacare-next-year/
There is no doubt that we as a country have a spending problem. Our current government is a bloated, wasteful pig that serves principally those who run it. But no party will win the argument that “the government spends too much” unless and until the people are sent the bill for the actual costs of that government. If you believe that we should pay for the government we get, and that our annual Federal budget should be balanced, then you should have no objection to seeing your taxes raised to pay for current levels of government spending. Perhaps when the tax burden begins to hurt, we’ll see more clearly the virtue of cutting spending and begin to vote accordingly.
Okay I am still not following why I, who makes less than $40k, should care about Matt Damon being taxed to the hilt??? I say tax the rich through the nose.
Why does my “stupid party” care about protecting the money of the wealthy? So perhaps there are a few employers who will get hurt and lay off employees that will blowback on the WON not the GOP. I think it’s a win-win if we tax the wealthy and if the economy goes back into recession, the WON will get blamed. And if employers are so important how come my “stupid party” does not ask for exemptions for employers with less than 100 employees?
I still do not understand why we protect the money of those who use their money against US-the “stupid party?” We should want to take more of their money away and than of unions and 527s and political 501(c)(3) charities(?).
Static analysis (numbers on the page without taking into account changes caused) indicate that if you raise taxes by 25% such as the Cap Gains going from 15% to 20% is a 25% increase, you would get 25% more revenue. Similarly cutting from 25% to 15% should cause a real drop in revenue. Actually when the Cap Gains was cut during Clinton to 15%, instead of a loss of revenue there was a big increase. Paying a lower rate got people to make a transaction rather than just hold.
The US has had lots of tax rates, but strangely revenue from income taxes has always hovered around 19%
Tax a rich guy a lot, he will likely choose time over money, not take the big risk because there is lower reward. He won’t open or expand the business, take more vacations, buy the products from an Asian supplier rather than build the plant here etc.
Taxing the richest 1% at 100% of income only covers around 30% of our current debt. Next year there will be a lot less rich to suck on, so it can’t really be repeated.
The American people voted for more government and more government spending.
Now they are surprised that it has to be paid for?
This is a good ‘learning moment’. Rather than quibbling in DC, I hope real conservatives will be making the case for smaller, less wasteful government.
The low-information voter, closely tied to the “voter what gets their government check” believes that taxing the rich is a fine way to go. They demand that the rich pay for their lifestyle. After all, they are just as entitled to everything that the rich have, based on years of that being drummed into their skulls by the education “system” of this nation, the liberal fantasy-land.
They care not from where the money comes, so long as they get their obama-phone, their EBT card, their section 8 housing and all of that. Doesn’t matter that they never worked a day in their lives, they are entitled don’t you see? For the world is unfair and the reason they vote for democrats (socialists) is that because they make it all fair again. In other words, the socialists cover the sorry asses of those who never tried to make their own lives better by working, getting an education, competing and/or being successful at something because that same education system taught them that “only a certain kind of person can be a success”.
When I went to school, anyone could be a success and the school library was filled with books of people who came from nothing, became successful and stood as an example of hard work and dedication. Nowadays, kids’ heroes are violent rap artists and idiot “affletes” who can’t string two words together, yet have some sort of college education (affletic skosship).
Who this nation elevates to celebrity status and the incredibly low standards they have for them speaks volumes as to what people consider important. Honesty is disregarded because of the money said celebrity has. But they fail to recognize that the celebrity or sports star has limited ability. They generally know very little about anything, including their own current profession.
After all, look at our celebrity president. He knows almost nothing, except how to whine and blame. Again, a perfect sample of a bad example.
Fair enough observations and all the more reason to hammer it home to people what big spending government really costs.
Even the ‘low information’ voters are going to notice a chunk coming out of their wage packet. Let the people face the consequences of their choices, vote for higher spending and you get a bill.
Only 50.5 % voted for the lying moron ( and his spending) in the white house, 49% + voted against it. What do you mean by the American people voted for it.
Democracy.
The American people have spoken and they have said ‘Four more years’.
So now they have to face the consequences.
And yes, that is harsh on those Americans who never supported Obama but that is what democracy is all about.
Keep repeating that the Clinton Tax Rates are Good, the Clinton Tax rates are good.
Let’s not forget the thousands of dollars in hidden Obameecare taxes you’ll be paying starting in January when your health insurance skyrockets. Your average family of 4 in a household of $40,000 or so can expect an additional 4-5 grand in tax hikes and insurance premium hikes in 2013.
It’s not going to be pretty, Obamee’s America.
Yes, I’ve been doing the math and though much of it won’t hit for a couple of years, ultimately, my take-home pay will be about half of what I get now due to this fiscal-cliff BS, for starters and later, the healthcare penalties that will require me to pay for other people’s healthcare.
Looking at Germany farming out their senior-citizens to eastern Europe (a convenient euphemism the papers use to avoid calling it “former Soviet-bloc nations), the epic FAILURE of the healthcare system in the UK that lets senior-citizens starve to death and so on.
Why bureaucrats think that bureaucracy is the solution to everything has always escaped me. Have they NEVER been to the DMV? I mean, they had to get a license at some point, did they not? It’s remarkable in that they never seem to connect the dots or understand the parallel.
What causes someone to say, “What we need here is some bureaucracy! That will fix this inefficiency! That will straighten things out!”. Interestingly, I worked for a large number of senior officers in the military who think exactly that way. Structure, compartmentalization, limited responsibility, administration, management. Maybe that is because they all got their MBA degrees from the same correspondence course. Not too far off the mark, I should say since the higher-learning centers espouse that type of business model for everything.
I see it where I work now where every “new event” results in the implementation of a new policy or rule. Our manuals get thicker with policies and procedures yet little else changes. These holders of these “degrees” fail to utilize common (or good) sense and believe that dictatorial rule is the best way to operate. They, themselves fail to understand how it affects the workers and how they, themselves might feel if they were subjected to a new rule, regulation, policy, procedure every couple of weeks to months.
It’s idiocy run amok. Academics dictating theory in the form of policies and rules. I’m waiting for the time-clock to appear in the common-use area for me and my colleagues who are salaried individuals, all in the name of efficiency.
The real comedy though is that the “leaders” of the company I work for actually, just like the socialists running our government, think they are actually brilliant and the biggest knee-slapper of all? They think they are respected.
Clueless. In every respect. They insulate themselves from reality and pick and choose who they want to deal with solely based on their “threat potential” as to how they feel about management.
So they’re cowards, too.
But it’s not surprising, given the way they were educated.
All too true. The madness you describe is a result of the view that for every human problem, there must be a policy solution, and preferably one directed by government. What results is ever larger and ever more costly bureaucracy. And increasing paralysis. But the beast is quite content to feed on itself.
Income taxes can be changed retroactively, and it’s been done before.
There is no fiscal cliff.
One can get assumption value from here but it’s not perfect,it may fluctuate as I suppose..If anyone actually thinks Feckless Won even cares about taxes going up on all of us – think again.