Taxes Will Rise in 2013

Although the fiscal cliff has been averted, there was a consequence to it that will make many unhappy: Americans are projected to pay higher taxes in 2013.

From the information and facts taken from the Tax Policy Center, about 77% of American households will be paying higher federal income taxes for this year. The hike will mostly be in payroll tax.

According to Roberton Williams, an economist at the Tax Policy Center, only less than 2% of all tax units will see an increase in taxes in the year 2013.

If you are making over $400,000 in a single year, on your own, or if you’re part of a family that rakes in over $450,000 than the tax rate on your last dollars of income will go up about 5 percentage points.

All workers across the nation will definitely see an increase in taxes this year. Congress had let the payroll tax cut expire right before the calendar rolled into 2013, meaning that for every $100 you make this  year, $2 will be taken away by taxes, compared to last year.

There was quite a debate over taxes, as it played a critical part in this past year’s presidential election. President Obama stayed true to what he said in raising taxes for the wealthy. President Obama’s decision is still more or less controversial because there are some that believe the wealthy shouldn’t bear the responsibility of paying more taxes because they have more money. Regardless of whether it’s fair or not, workers will still have to pay more taxes this year.