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Nov222012

Tax Increases as % of Income #5 – New Hampshire $5 ,660 5.81% If Fiscal Cliff agreement not reached

Sandy-Ravaged New Jersey Families Face $6,933 Tax Hike in Fiscal Cliff Stalemate

November 21, 2012

christie

President Barack Obama and New Jersey Gov. Chris Christie (R). (AP)

(CNSNews.com) – Families in Hurricane Sandy-ravaged New Jersey will face the highest tax increase as a percentage of their income – 6.82%  or about $6,933 more in taxes -- if Congress does not reach an agreement on the fiscal cliff tax issues during the lame-duck session, according to an analysis by the Tax Foundation.

In its study of how the fiscal cliff would affect typical families in each state, the Tax Foundation reports that if the numerous tax provisions that are due to expire on Dec. 31 are not changed, a four-person family in New Jersey with a median income of $101,682 will see its taxes go up at a rate 6.82 percent of its income, which translates into about $6,933.

The tax issues in question are the expiration of the Bush tax rates, which also include the elimination of the 10 percent tax bracket and the reduced deduction for married filers; ending the 2 percent cut to employee-side Social Security taxes; and the Alternative Minimum Tax.

Maryland was ranked second by the Tax Foundation because a four-person family there, with a median income of $106,707, would see its taxes go up 6.74 percent as a percentage of income, or about $7,194.

Connecticut, ranked third, would see taxes for a family of four go up by 6.62 percent, or $6,653.

All five states with the top tax increases are “blue states,” which President Obama won in the 2012 presidential election. But so are four out of the bottom five states with the exception of Kansas.

 

Top Five Tax Increases Tax Increases as % of Income

#1 – New Jersey $6,933                                6.82%

#2 – Maryland    $7,194                                 6.74%

#3 – Connecticut $6,653                                6.62%

#4 – Massachusetts $6,632                           6.53%

#5 – New Hampshire $5,660                          5.81%

 

Forty states would see tax increases between $3,000 and $3,999. Six states would see an increase between $4,000 and $4,999 and three would see increases between $6,000 and $6,999.

New Hampshire would be the only state to see a tax increase between $5,000 and $5,999 and Maryland would be the only state to see a tax increase over $7,000.

 

Bottom Five Tax Increases Tax Increases as % of Income

#50 – Washington $3,362                                4.12%

#49 – Hawaii    $3,453                                    4.16%

#48 – Colorado $3,646                                    4.29%

#47 – Kansas $3,227                                      4.31%

#46 – Illinois $3,417                                        4.32%

 

The potential for tax increases on millions of U.S. taxpayers is still possible, the Tax Foundation explains, and would be especially devastating for lower-income families because of the changes to the child tax credit; the elimination of the 10 percent bracket, which would go back to 15 percent; and the reduced standard deduction for married filers -- all of which are provisions in the 2001 and 2003 Bush tax cuts.

http://tinyurl.com/cfl6g5z

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Reader Comments (2)

I am still lost why the theme of last election was not US job creation. Lets try the Laffer curve again.

Chris
Owner Cel Financial Services
IRS Registered Tax Return Preparer
Registered bonded California CTEC Tax Preparer
http://www.yelp.com/biz/cel-financial-services-fillmore
November 25, 2012 | Unregistered CommenterChris
Chris:

The theme of the last election :
To scare old people into believing Republicans would eliminate Medicare and Social Security.
To scare single women into believing abortion was on the verge of being outlawed by The TEA Party.
To convince Hispanics that Republicans hate them.
And to sell the idea that Republicans will gut public education.
The economy had nothing to do with it.
November 26, 2012 | Registered CommenterEd Naile

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