Consequences of Going Over the Fiscal Cliff: Tax Hikes on Nearly Every American Taxpayer
In less than two months almost every single American taxpayer will be hit with the largest tax increase in history unless the President leads by putting forward a reasonable plan that includes real reforms to the nation’s unsustainable entitlement programs. Federal Reserve Chairman Ben Bernanke said inaction on this so-called fiscal cliff is a threat to the economy. The nonpartisan Congressional Budget Office (CBO) says failure to act will push the already weak economy into recession and force unemployment to surge past nine percent.
If nothing is done, what exactly does this mean for American taxpayers?
Take a look:
- 28 million middle-class families and individuals will, for the first time, get hit with the Alternative Minimum Tax (AMT) and owe $92 billion in new taxes. (Source: Letter to Senator Hatch from Acting IRS Commissioner Steven T. Miller, November 13, 2012)
- $2,183 in new taxes will hit a family of four earning $50,000 per year. (Source: Analysis by Senate Finance Committee Minority Staff)
- Nearly 2 million American jobs will be put at risk. (Source: Analysis by the Congressional Budget Office, November 8, 2012)
- 2,200 percent rise in the number of farmers and ranchers who will face the death tax. (Source: Analysis by the Joint Committee on Taxation, September 7, 2011)
- Nearly 1 million flow-through entities, most of which are small businesses, will see their taxes go up by 17 percent. (Source: Analysis by Senate Finance Committee, Minority Staff)
- 900 percent increase in the number of small business owners who will get hit with the death tax. (Source: Analysis by the Joint Committee on Taxation, September 7, 2011)