Economic Education

Okay so what will the effect be of the new tax deal?

Households earning $450,000 or more ($400,000 for singles)
UP
was: 35%
NOW: 39.6%

That's a rise of 4.6% for the top 2% of the population ... $18,000 MORE/yr in taxes

Their capital gains taxes will go up as well
Was:15%
NOW:20%.

This will cause a DROP in revenues by $290Billion because people will be less likely to take chances with their funds

The payroll tax cut, passed in 2010, was allowed to expire which means everyone's taxes are going to go up!

Social security deduction will increase from 4.2% to 6.2%

For a worker making $50,000/yr it will go up a whole $1000! I know, that's about $50 a week, but that's a lot of money for people who are losing 1/2 of it to taxes already

The was the first across the board tax increase in 20 years

They figure the deal will INCREASE the deficit by $4TRILLION over the next 10 years