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Fiscal Cliff: The latest on what it will cost YOU

6:48 PM, Nov 20, 2012   |    comments
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CLEVELAND -- Tax increases will even reach some people making $20,000 per year if things go over the fiscal cliff.

The Tax Policy Center's latest analysis shows the effective income tax rate of people making less than $20,000 increasing sevenfold. Some in that bracket who had paid no income tax in 2012 would pay $412 in 2013.

Taxpayers making between $20,000 and $40,000 per year would get hit with an average tax bill $1,231 higher in 2013, and earners in the next bracket, with incomes between $40,000 and $65,000, would see their income tax rise an average of $1,984.

Middle-upper incomes between $65,000 and $108,000 would get socked with an additional tax bill of $3,540, the figure most commonly used as what the "average" American taxpayer will dish out.

Higher income earners, making up to half a million dollars per year, will pay an average of $8,369 in additional 2013 income taxes should the "fiscal cliff" become reality.  And those above $500,000 in annual income would see their tax liability jump some $120,000.

There are other taxes set to rise after December 31, 2012, including estate taxes, the Alternative Minimum Tax, or AMT, payroll taxes, and tax rates on dividends and capital gains.

WKYC-TV

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