Taxes Go Up If Law Expires
Special Report - August 19, 2010
An August report from the Tax Foundation found that the average middle-income family in the United States would see a federal tax bill over $1,500 higher than this year, should the Bush-era tax cuts be allowed to expire on December 31, 2010. The median U.S. average middle-income family’s income is $63,366. The August 1 report, “Effect of Expiration of Bush-Era Tax Cuts on Average Middle-Income Family, by State and Congressional District,” looked at the impact on the tax bill of the “average of the families in the middle 20 percent of the income distribution,” should the current tax cuts expire as scheduled. Family was defined as “arrangements with two or more people,” including “any married couple family (with or without children), single parent family, or household with related people living together.”
North Carolina families in the report with the median income of $56,588 would see a federal tax bill $1,459 higher than this year’s $2,616 bill, if the tax cuts expire next year. Families in North Carolina’s fourth congressional district, represented by David Price (D4), would see the greatest tax increase in the state and the 70th biggest in the nation (out of 436 districts)$1,843. Families in North Carolina’s first congressional district, represented by G.K. Butterfield (D1), would see the smallest difference in their tax bill of any district in North Carolinaan increase of $1,157 if the tax cuts expire. The report notes that federal income tax liability can be affected by a myriad of factors, including “income level, sources of income, marital status, number of children, [and] housing status.” All in all, though, the report shows that “families with more children will face a bigger tax impact than families without children due to the child tax credit doubling, which was part of the tax cuts.” Additionally, “married families will be affected differently than single families due to the marriage penalty provisions that are due to return.”
Persons who wish to determine their specific liability under the expired Bush tax cuts, the extension of the Bush tax cuts, and President Obama’s proposed 2011 budget tax policies can visit www.mytaxburden.org to use “an interactive tax calculator for 2011.”
Voters Say NC Taxes Too High - March 24, 2010
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