Taxes rising for most people despite fiscal deal

WASHINGTON — While the tax package that Congress passed New Year’s Day will protect 99 percent of Americans from an income tax increase, most of them will still end up paying more federal taxes in 2013.

That’s because the legislation did nothing to prevent a temporary reduction in the Social Security payroll tax from expiring. In 2012, that 2-percentage-point cut in the payroll tax was worth about $1,000 to a worker making $50,000 a year.

The Tax Policy Center, a nonpartisan Washington research group, estimates that 77 percent of American households will face higher federal taxes in 2013 under the agreement negotiated between President Barack Obama and Senate Republicans. High-income families will feel the biggest tax increases, but many middle- and low-income families will pay higher taxes too.

Households making between $40,000 and $50,000 will face an average tax increase of $579 in 2013, according to the Tax Policy Center’s analysis. Households making between $50,000 and $75,000 will face an average tax increase of $822.

“For most people, it’s just the payroll tax,” said Roberton Williams, a senior fellow at the Tax Policy Center.

Rob Port is the editor of SayAnythingBlog.com. In 2011 he was a finalist for the Watch Dog of the Year from the Sam Adams Alliance and winner of the Americans For Prosperity Award for Online Excellence. In 2013 the Washington Post named SAB one of the nation's top state-based political blogs, and named Rob one of the state's best political reporters. He writes a weekly column for several North Dakota newspapers, and also serves as a policy fellow for the North Dakota Policy Council.

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  • http://genelalor.com Gene Lalor

    Have a Happily Insane New Year!

    The year 2012 in America wasn’t all that happy, except for President Barack Hussein Obama.
    2012 was rife with insanities affecting virtually every sector of American life from our social fabric to our judiciary to our weather to the political arena to professional sports–quite a spectrum!
    And 2013 doesn’t look much better.
    Based on the New Year’s Day abject surrender by John Boehner’s Republican House of Representatives to Harry Reid’s Democrat Senate, thereby acquiescing to an exercise in fiscal lunacy which will reduce the nation’s out-of-control spending by all of $1. in exchange for every $41. tax increase, (a pittance of $15 billion in spending cuts versus $620 billion in taxes), in a country already burdened with over $16 trillion in national debt and a 2012 federal budget debt of $1.2 trillion.
    Insane!
    One suspects the inmates are clearly in charge of America’s asylum in 2013 just as they evidently ran things in 2012.
    The insane killings in Aurora, Colorado, the insane ratification of Obamacare by the Supreme Court, the insane violence of non-hurricane Sandy, the insanity of reelecting a president dedicated to bankrupting and destroying what remains of our great country, the insanity of the Sandy Hook massacre all posed formidable challenges to any sense of optimism for our future as a unified people and as a sane country confident in our future.
    Responses to those atrocities? Literally insane.
    Our politicians vowed to end gun violence in America by banning guns despite the reality that such actions have never curbed muderous criminal activity and, devoid of concerted efforts to severely punish rather than try to “understand” the social conditions that provoked the murderers, “gun controls” are less than useless–and probably unconstitutional.
    Insane!
    Obamacare is now the law of the land despite the fact that over half the United States, and the vast majority of physicians, despise the Patient Protection and Affordable Care Act–which is neither protective nor affordable. Yet, the electorate voted for many of the same people who foisted the PPACA on us.
    Insane!
    Superstorm Sandy wreaked unprecedented havoc on the East Coast last October, damage sustained and heartbreak still being experienced by tens of thousands with most, not all, the damage and heartbreak suffered by people in homes and businesses situated far too near the Atlantic and inland waterways. Yet, . . . (Read more at http://www.genelalor.com/blog1/?p=29419.)

  • kevindf

    Social security is an insurance program funded with premiums, not taxes.

    • Bat One

      Right! And if you leave your toenail clippings under your pillow at night…

      • kevindf

        Are you calling FDR a liar?

    • RCND

      No Social Security is a Ponzi scheme that was made legal by FDR but still operates in the same failed manner which makes it illegal for the rest of us to run

      • kevindf

        That’s right but it was sold as an insurance program. Has it been repealed as the fraud that it is?

        • RCND

          It needs to be

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