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Monday, 7 January 2013

Back of the envelope Fiscal Cliff middle class tax hike calculation

Posted on 14:29 by Unknown


Back of the envelope tax calculation :-

The tax hike on middle class tax payers (those earning less than $100,000) is about $200bn a year. (It is $300bn if nothing is done about AMT.)

In 2010 there were 67 million people who actually paid any taxes. (Well over 100 million people filed tax returns.)
The vast majority of these 67 million people will be earning less than $100,000, let's say 50 million.

That works out to an average of $4,000 per middle class / marginal tax payer.
Or roughly a 4 % tax hike.

That's why we are seeing reports of middle earners saying they are getting docked an extra $50 a week in additional taxes - or $2,500 a year. That is 5% if that person is earning $50,000 a year. It is 4% if they are earning $60,000.

See "Fiscal Cliff Deal. Obama's Corporate sell out." For more detailed Fiscal cliff analysis.
http://ian56.blogspot.co.uk/2013/01/fiscal-cliff-deal-obamas-corporate-sell.html
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