The Clinton Herald, Clinton, Iowa

Lifestyles

October 3, 2012

Report: 90 percent of Americans face higher taxes over fiscal cliff

Nearly 90 percent of Americans would face higher taxes next year if Congress permits the nation to hurtle over the "fiscal cliff," the year-end precipice of tax hikes and spending cuts that threatens to throw the nation back into recession.

A study published Monday by the nonpartisan Tax Policy Center finds that taxes would go up by a collective $536 billion next year, or about $3,500 per household, reducing after-tax income by about 6.2 percent.

But the impact would vary significantly by income level, the study found, ranging from a $412 jump for the lowest earners (a reduction of 3.7 percent in after-tax income) to $120,000 for the top 1 percent (a bite of 10.5 percent). Middle-income households — those earning between $40,000 and $65,000 a year — would see their taxes go up by an average of $2,000, the study found, leaving families with 4.4 percent less money to spend.

For most taxpayers, the bulk of the increase would be triggered by the scheduled expiration of tax cuts enacted in 2001 and 2003 during the George W. Bush administration. The expiration of President Obama's payroll tax holiday, which shaves 2 percentage points off payments to Social Security, comes in a close second.

But the lowest earners would be hardest hit by the expiration of tax breaks enacted as part of Obama's 2009 economic stimulus package, the study found. Those losses would include an expansion of the earned income tax credit and the child tax credit for working families, as well as a $2,500 credit for college tuition, which would shrink to $1,800 and be available for only two years instead of the current four.

The fiscal cliff is the name given to a collection of changes in current law that are all set to strike in January. The bulk involves the scheduled expiration of tax policies — or, in the case of new taxes in Obama's health-care initiative, levies that are set to take effect for the first time, such as a new 3.8 percent tax on capital gains for high-income households.

Text Only
Lifestyles
  • Student leadership Alumni honor students at luncheon CLINTON -- Clinton Community College student leaders were recognized at a student leader luncheon. The CCC Alumni Association honored 30 students, who were nominated by the CCC staff and faculty for showing leadership in the classroom, on campus and

    April 18, 2014 1 Photo

  • EICC to host career fair DAVENPORT-- Manufacturing jobs are available for those who look for them. Eastern Iowa Community College's Blong Technology Center is helping in that search with its upcoming Advanced Manufacturing Career Fair, from 2 to 6 p.m April 29. Several area

    April 18, 2014

  • CCC Veterans Association host 'Honor Flight' showing CLINTON -- The Clinton Community College Student Veterans Association will be host a public showing of the Honor Flight Movie at 6 p.m. Thursday, May 8. The movie will be shown at Clinton Community College Auditorium, 1000 Lincoln Blvd., Clinton. The

    April 17, 2014

  • Sound of Music Screenings showcase films at TLP MOUNT CARROLL, Ill. -- Timber Lake Playhouse will host two events next month. A sing-along "Sound of Music" event will be held at 6:30 p.m. Saturday, May 3, and at 2 p.m. Sunday, May 4, at the Mount Carroll theater. A screening of "Young Frankenstein

    April 17, 2014 1 Photo

  • April is Donate Life Month

    CLINTON -- The month of April is National Donate Life Month across the United States. Hospitals across the nation, like Mercy Medical Center in Clinton, join to recognize the impact that organ and tissue donations make and to honor the generosity of

    April 17, 2014

  • Screen shot 2014-04-11 at 4.49.09 PM.png Train, entertain your pets with these 3 smartphone apps

    While they may not have thumbs to use the phone, pets can benefit from smartphone apps designed specifically for them.

    April 13, 2014 1 Photo

  • Alternatives available for addicts DEAR ANNIE: I enjoy reading your column and agree with most of your advice, including your recommendations when it comes to handling alcohol addictions and binge drinking. I do not work in this field, but I've seen alternatives to AA that may be more

    April 12, 2014

  • Peace Soup Peace Soup completes 7th year CLINTON -- Peace Soup concluded its seventh year this week. Peace Soup was held for five Tuesdays during the Lenten season. The series for 2014, "Interfaith Connections to Peace," featured the topic of Christianity. Elizabeth Liggett, pastor at St.

    April 12, 2014 1 Photo

  • Milkweed plants Raising awareness of milkweed MAQUOKETA -- The Hurstville Interpretive Center will attempt to raise public awareness about milkweed plants. The center is holding a plant sale for area residents to try to include more milkweed plants in the region for monarch butterflies. The sale

    April 10, 2014 1 Photo

  • Women's club extends sale CLINTON -- The Clinton Women's Club has extended the deadline for the group's annual silent auction. The deadline for bids is through Saturday for the purse and bag silent auction at the George Curtis Mansion, 420 Fifth Ave. South. During this past w

    April 9, 2014

Elections
Front page
Clinton Herald Photos


Browse, buy and submit pictures with our photo site.

Poll

Should the city of Clinton appeal the open records violation ruling that will cost taxpayers $40,600?

Yes
No
     View Results
AP Video
Olympics 2014
Featured Comment
Featured Ads
Blue Zones Project
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.