Families in Hurricane Sandy-ravaged New Jersey will face the highest tax increase as a percentage of their income – 6.82% or about $6,933 more in taxes — if Congress does not reach an agreement on the fiscal cliff tax issues during the lame-duck session, according to an analysis by the Tax Foundation.
In its study of how the fiscal cliff would affect typical families in each state, the Tax Foundation reports that if the numerous tax provisions that are due to expire on Dec. 31 are not changed, a four-person family in New Jersey with a median income of $101,682 will see its taxes go up at a rate 6.82 percent of its income, which translates into about $6,933.
The tax issues in question are the expiration of the Bush tax rates, which also include the elimination of the 10 percent tax bracket and the reduced deduction for married filers; ending the 2 percent cut to employee-side Social Security taxes; and the Alternative Minimum Tax.
Maryland was ranked second by the Tax Foundation because a four-person family there, with a median income of $106,707, would see its taxes go up 6.74 percent as a percentage of income, or about $7,194.
Connecticut, ranked third, would see taxes for a family of four go up by 6.62 percent, or $6,653.
All five states with the top tax increases are “blue states,” which President Obama won in the 2012 presidential election. But so are four out of the bottom five states with the exception of Kansas.
Top Five Tax Increases Tax Increases as % of Income
#1 – New Jersey $6,933 6.82%
#2 – Maryland $7,194 6.74%
#3 – Connecticut $6,653 6.62%
#4 – Massachusetts $6,632 6.53%
#5 – New Hampshire $5,660 5.81%
Read more in Cnsnews.
Let’s just be clear: The “fiscal cliff” is the expiration of the Bush tax cuts. Remember? Those evil infamous Bush tax cuts that were supposedly for the rich? At least that’s what we were told by the Democrats, the liberals, and their supporters in the left wing media.
Suddenly, now, when the Bush tax cuts expire, we find out that these tax cuts were for all of us. Every one of us. Whoever pays taxes – rich and poor, everyone had their taxes cut by Bush, and now all our taxes will go up Jan 1st, 2013.
(And this is besides all the new taxes from ObamaCare.)
To make this more personal, currently all kollel yungerleit receive a $1,000 Additional Child Tax Credit per child, which is refundable (up to 15% of your earned income above $3,000). This means that you get the money back even if you don’t owe any taxes.
But that was only thanks to the Bush tax cuts. Beginning in 2013, that amount will go back to $500 per child, the way it was before the tax cuts.
And there are many, many more ways that this will affect all of us. It will especially affect our parents, the shver, and the employers who employ the wives and the shvers. Oh, and it will also affect those rich guys who employ all of us and who donate so much of their money to our mosdos so that tuition can remain so low.
Forget it. I should just shut up. Obama won’t agree to extend the Bush tax cuts, we’re going off the fiscal cliff, and shalom al yisroel.
At this point I would like to publicly thank President Obama for standing with Israel in its time of need, and for allowing it to defend itself from attack by the murderous Hamas. Frankly, you pleasantly surprised me. You are living proof that lev melachim v’sarim b’yad Hashem.
How about contacting Rep. Smith, who was seeking support from Lakewood and have him help barter a deal to keep the lower tax rates. It is time for the congress to work to help the people that elect them and forget the agenda they have been following that is confrontational and does not help the people who elect them. If our representatives do not work for us they should be fired.
‘Yid’ has made some very on-target points. Last one being the most important to reflect on in these shifting times.
why should the tax payers pay for it
state of nj lay off jobs like in the private sector
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