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77 Percent Will Pay More 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 who earn 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.

Related Topics: 2013 taxes, Fiscal cliff deal, Payroll taxes 2013, and fiscal cliff

Janie Brown

7:14 pm on Friday, January 4, 2013

Thank You Mr. Congress for thinking about yourselves and not the average household that is barely making it, this increase is just enough toss us off the cliff. That increase is our car insurance!!!!!!!!!!!!!!!!!!!

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Ryan

11:41 pm on Friday, January 4, 2013

This is complete BS everything continues going up expect for our pay checks. Come on this is ridiculous another hit on the average Joe...The article state off stating that 77 percent of Americans are going to take the hit 77 PERCENT...SMH...Thanks for thinking of us when you wanted to screw someone real hard...Please tell us wants going to get cuts is it Gas? Or Insurance? Or Rents? Or maybe Food Prices? Please tell the 77 percent of Americans what other cuts are going to take place to compensate for the hit we're taking...The rich get richer and screw middle or average Americans...

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Thomas Kelly

10:28 am on Saturday, January 5, 2013

I am 61, retired, drive a school bus and have a job in between my runs. Don't make very much in pay. I would have been happy to pay more in taxes to get the automatic spending cuts. The voters allow both houses to kick the can down the road. It is our fault. We keep electing the same over and over. There really is not much difference between the two parties. I know one way we can cut entitlements.
Get rid of the high class welfare our congress votes themselves in pay and benefits
Tom

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Just Another Taxpayer

10:53 pm on Saturday, January 5, 2013

Why is Joe Sousa allowed to post this racial slur against the President? I find it more offensive then calling someone an "idiot"?

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Naome Lixes

9:31 am on Sunday, January 6, 2013

Let's see -

Joe Barack

Height 5' 11" 6' 1"
Weight 240 176
3 pt % 4 40
Packs/day 3 .5
Job description Day laborer Leader of the free world

IQ Unknown 130
Readership The unfortunate The entire world

To take a page from the Tea Party presumption to read other people's minds and make sweeping generalizations, this sounds like a frustration born of a thwarted
birthright - plain envy.

It' pathetic.

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b kcaj

1:30 pm on Sunday, January 6, 2013

The derogatory song about President Obama was brought to you by Joe Sousa, convicted felon and UNSUCCESSFUL candidate for Tiverton Town Council.

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Joe Sousa.

3:57 pm on Tuesday, January 8, 2013

"The Obongo Song" for Marijuana Hypocrite Obama - YouTube
► 2:38► 2:38
www.youtube.com/watch?v=S3iOHt1RKR8
,

bigmanny

5:46 pm on Saturday, January 5, 2013

Joe Sousa that is the same name that Jethro used to use for the President. Do you still deny posting as Jethro and all those other names.

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bigmanny

5:37 pm on Sunday, January 6, 2013

No Joe I have never had those type of thoughts. You on the other hand have earned the nickname JoeJay Simpson Sousa. Do you own a white bronco and some leather gloves. You a real piece of work Joe. Keep up the posting and racist rants. It shows the town who you really are.

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Richard Joslin

6:50 pm on Sunday, January 6, 2013

Big manny likes young boys as toys

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bigmanny

7:14 pm on Sunday, January 6, 2013

Joe it is obvious that you are now posting a Richard Joslin. Hey I saw the for rent sign on your place, what the matter the old tenant didn't like the hole in the walls.

b kcaj

5:52 pm on Saturday, January 5, 2013

Joe Sousa.
5:16 pm on Saturday, January 5, 2013
Say it ain't so OBONGO !

Joe-Is that the way you address the president of the United States? Like him or not, maybe you should show some respect for the office of the president, even if you dislike the man.

And you wonder why you were trounced in your unsuccesful bid for town council?

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Just Another Taxpayer

10:05 am on Sunday, January 6, 2013

Why does Joe Sousa get to post whatever he wants on this site while other posters get in trouble for using the term idiot? Can someone from the Patch please respond to my inquiry?

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bigmanny

10:51 am on Sunday, January 6, 2013

Joe Sousa is an idiot. Let see what get removed faster. His racial name or my statement of fact.

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w t reinwamd

12:36 pm on Sunday, January 6, 2013

Less on the paycheck means no more 401k no more pension no more trips to walmart. No more spending period

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w t reinwamd

12:39 pm on Sunday, January 6, 2013

Then all those people that wanna keep poping out kids so they can get free phones and live on welfare

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w t reinwamd

12:47 pm on Sunday, January 6, 2013

Maybe i should quit my job of 18 years and go for the free stuff

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b kcaj

10:37 pm on Sunday, January 6, 2013

Joe-It appears you have quite the infatuation with the mysterious "Richard Joslin". Who will be the next object of your affection-Paul Doughty?

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Renee Cwiek

4:03 pm on Tuesday, January 8, 2013

Does anyone monitor this site anymore?

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Tiverton Dad

4:18 pm on Tuesday, January 8, 2013

Renee, a lot of comments do get deleted, but that's only a small part of the solution. Patch needs to start deleting members.

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John

9:57 pm on Tuesday, January 8, 2013

Google owns this web site. Maybe there running out of money to hire people to monitor this site?! LOL..,,,.... Or maybe the monitor likes to see people make fools of them self?!...,,,, I'm sure there's alot of people who don't give there opinion because of all the fowl comments on here?! ...,,,,... It's like a teenagers chatroom!

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