The tax increase that could result as a result of “fiscal cliff” negotiations have been talked about as though they’d impact only a small number of very rich Americans. Whether we’re talking about the broad category of the Bush tax cuts, or capital gains taxes specifically, Americans are being sold on the idea that tax increases would most impact someone else.
That’s not true according to a report from the Tax Foundation. The tax increases that would result from the expiration of the Bush tax cuts and the Alternative Minimum Tax would be broad and dramatic.
In fact, North Dakota would be one of the states hit the hardest by the tax increases, with a nearly $5,000 median increase in federal tax burdens:
The “divide and conquer” strategy has worked well for the tax hikers. Americans don’t mind the idea of higher taxes, as long as we’re talking about higher taxes for someone else.
But the truth is that the “fiscal cliff” means significantly higher taxes for all of us.