How the tax cut debate affects you. Interactive calculator to show how you would be affected

[JohnWxy]

http://www.usatoday.com/news/washington/2010-09-21-taxcuts21_ST_N.htm -- USA Today

By Richard Wolf, USA TODAY

WASHINGTON — In 2001, George W. Bush signed one of the biggest tax cuts in U.S. history. He heralded it as an elixir for a struggling economy. But it also contributed to a growing deficit.
Congress set the tax cuts and others enacted in 2003 to expire in 2011 so the costs would not explode in the coming decade.


Now, Democrats in Congress, at the urging of President Obama, are poised to make at least 80% of those tax cuts permanent, at a cost of $3 trillion over the next decade. Up for debate is another $700 billion in tax cuts for the 2% of taxpayers with taxable income above $200,000 for individuals and $250,000 for couples. Obama wants to raise taxes on income above those levels.

Here's a sample from article:

                                                                taxes paid 
				    annual adjusted		now - after		
				    gross income		tax cuts end		
Married couple, 2 children undr 13     $69,900 	      currently	 $1,653 		160%	increase	
					      after taxcuts end	 $4,290 			
									
									
	             single person    $325,000 		         $73,000 			
						                 $79,600 		9%	
									
									
married couple 2 children under 17  $1,000,000 		        $236,200 			
						                $289,400         	22.5%	
									









  http://calculator.taxpolicycenter.org/">See how you would be affected. - interactive calculator of income tax

[Curmudgeoness]

1. If tax cuts end, and no alternative break for lower/middle income,

my taxes go up $1236. However, there was a third alternative not mentioned in the OP, and that is if the Obama plan to keep tax cuts in effect for the majority of taxpayers. Under that option, my taxes go up $0.

What is really revealing is the first example in the OP, with a 160% increase. If the Repugs want to refuse extension on tax cuts on anyone if they can't keep them on the wealthiest, this is a might big screwing.

[JohnWxy]

2. The article in the print edition of USA Today (sept 21) did have chart showing examples for each

income tax level. I picked out three. I could not find the chart which gave you a good overview of the impact of letting tax cuts expire for all income tax categories. Obviously, the impact on higher income levels is proportionally smaller - all other things being equal (deduction, dependents etc).

[Curmudgeoness]

5. If you go to the custom work page, you can put your circumstances

in, and you can chose all three options.

[sinkingfeeling]

3. Would cost me another $1620 in taxes if they expire.

[drmeow]

4. I know this is nit picky

But it annoys me that the default value for a married couple under the age of 65 with no children has one spouse earning substantially less than the other spouse - anywhere from 30 to 90% less. Most DINKS I know have much greater parity in salary than that.