.

77 Percent Will Pay More In Taxes in 2013 Under Fiscal Cliff Deal

The main reason is the elimination of the payroll tax.

Despite the House and Senate reaching a Fiscal Cliff deal, 77 percent of Americans will pay more in taxes in 2013.

That's because even though just 1 percent of households will pay higher income taxes, an increase in federal payroll taxes will hit nearly every wage earner, according to analysis by the Tax Policy Center.

Individuals earning between $40,000 and $50,000 a year face an average tax increase of $579 in 2013, according to the Tax Policy Center's analysis.

The average U.S. worker would pay $679 more in taxes this year under the fiscal cliff deal passed by the Senate early Tuesday morning, while the average member of the top 1 percent of earners would pay $73,633 more, according to Tax Policy Center analysis.

The increases are relatively modest compared to what the fiscal cliff would have imposed, reports NBC News.

The payroll tax cut is gone, meaning smaller paychecks in 2013.

That tax break, in effect in 2011 and 2012, reduced the Social Security tax rate workers pay to 4.2 percent. The resumption of the regular 6.2 percent rate means about $1,000 less in pay this year for people making $50,000, reported marketwatch.com.

The richest households face the biggest tax hikes, reported USA Today.

The income tax rate rises to 39.6 percent from 35 percent for individuals earning above $400,000 for individuals and $450,000 for married couples. For 2013, households making between $500,000 and $1 million will pay $14,812 more in taxes, says the Tax Policy Center analysis. Households making more than $1 million would get an average tax increase of $170,341.

Howard Kosrofian January 05, 2013 at 05:36 PM
SO people making between 40-50 k have to pay another 579.00 a year, wonderful IM sure they can handle that, iSN`T this fantastic in this ECONOMY.Add in inflation on food, and general living. GOING FORWARD WITH OBAMA IS JUST GRAND. He is such a nice guy and we have re elected him. WHAT A DUMB BUNCH OF FOOLS WE HAVE IN THIS COUNTRY. That`s what it took.
Ken B. January 06, 2013 at 02:37 PM
Enjoying your 2013 pay cut ? You asked for it, you got it.
Chris A January 06, 2013 at 04:04 PM
Wasn't Obama just saying 10 weeks ago during the debates that taxes would only go up on the wealthiest Americans? I guess he doesn't count payroll taxes.
Dennis Naughton January 06, 2013 at 04:33 PM
The richest households face the biggest tax hikes, reported USA Today.
Laurie Lynn klahn January 10, 2013 at 10:15 PM
Hold on America looks like the radicals of the 60s are going to get their way crush our country and start all over the takers are going to regret all the free stuff they get now in the future because soon there won't be any thing left to get !!!!!!!!!!
Laurie Lynn klahn January 10, 2013 at 10:23 PM
By the way my taxes went up another $30.00 a week thanks Obama supporters hope all you guys like paying more that is if any of you work
Ken B. January 12, 2013 at 03:44 AM
Dennis' pension is exempt, so he's OK with it all.

Boards

More »
Got a question? Something on your mind? Talk to your community, directly.
Note Article
Just a short thought to get the word out quickly about anything in your neighborhood.
Share something with your neighbors.What's on your mind?What's on your mind?Make an announcement, speak your mind, or sell somethingPost something
See more »