Raising Taxes on Everyone

by Kate Piercy Here’s an eye-opening breakdown of how possible tax increases coming next year could affect everyone, not only “the rich.” Some potential wallops include: As many as 30 million middle-class Americans could get hit with the AMT (Alternative Minimum Tax) next year. A school teacher married to a bus driver, with a combined income $120,000 and...

by Kate Piercy

Here’s an eye-opening breakdown of how possible tax increases coming next year could affect everyone, not only “the rich.”

Some potential wallops include:

• As many as 30 million middle-class Americans could get hit with the AMT (Alternative Minimum Tax) next year.
• A school teacher married to a bus driver, with a combined income $120,000 and two kids, could see their income taxes go up $4,499 next year, before any potential AMT penalty, which could add several thousand dollars to their tax bill.
• A family of four with an income of $45,000 could pay $2,083 more in taxes. Ouch.
• As for the hard-working single mom, if she makes $40,000 a year, she will pay the IRS $1,607 a year more.

Congress adjourns this week leaving much unknown about what to expect regarding taxes next year. Expect this issue to be at the forefront of campaigns in the coming weeks.