Wednesday, August 15, 2012

Economy - Taxes - #4129 - What Will Taxmageddon Mean for Virginia? - Heritage Foundation (2) Government Will Take Almost Half Your Paycheck in 2013 - Heritage Foundation


On January 1st, 2013, there will be a $494 billion tax increase on you. This is the highest single-year tax hike in U.S. history. We call it taxmageddon. Taxmageddon is coming from a variety of income tax rates increases, a higher death tax, new taxes from Obamacare, and many more. These tax hikes will primarily hit the middle class, with the dreaded Alternative Minimum Tax being the worst offender. 

(1) Average Tax Increase per Tax Return -  $3,762.00
(2) Total Tax Increase for State -  $15.15 Billion
(3) Average Income Per Tax Return -  $68,548
(4) Total Tax Returns -  3,879,451

You need to see the details to grasp just how bad it is. Understanding the Data in the State and Congressional Tables The data used to create these estimates are based on the most recent available IRS and Congressional District information. Two factors are important for the reader to keep in mind: 2010 Congressional District Lines. The Congressional District data are drawn from the districts as they existed in 2010. While the general shape of the new district lines is known, not enough detail down to the zip code level is available for CDA to produce tax estimates based on new district lines. Tax Data Based on IRS Numbers. CDA used IRS estimates and data in the following manner: AGI Estimates for 2013 are based on the historical growth of adjusted gross income that occurred between 2006 and 2010,[1] as well as IRS estimates of tax returns for 2013.[2] Note that the average is based on "per tax return," not per person; thus, if a husband and wife file jointly they will see the identified tax increase as a family, not per individual. Total National Tax Increase is based on estimates from the Office of Management and Budget and Joint Committee on Taxation as detailed in research by Heritage analyst Curtis Dubay.[3] Congressional District Tax Increases – Using 2006 and 2008 IRS data, CDA used personal income tax data at the zip code level to calculate tax increases in each district.[4] State Tax Increases were determined by summing or averaging across the congressional districts.  To see interactive Map, click here........ To see results for Virginia, click on state, ..........

Government Will Take Almost Half Your Pay Check in 2013 - Heritage Foundation - How high is the marginal tax rate on each additional dollar the average American earns? In other words, if you got a raise of one dollar, how much of that dollar would be taxed away? These rates are already high, and they’re getting higher next year. A middle-class taxpayer’s income is subject to a 25 percent federal income tax. Then there is the federal Social Security and Medicare payroll tax of 13.3 percent in 2012—5.65 percent of that is removed from the employee’s paycheck, and the remaining 7.65 percent is paid by the employer. (In reality, the employee pays the entire 13.3 percent, because the employer’s portion of the tax does not affect the cost of labor: The employer would pay the employee 7.65 percent more if there were no employer’s portion of the payroll tax.) So the 25 percent federal income tax plus 13.3 Social Security and Medicare payroll taxes equals 38.3 percent going to federal taxes in 2012.  Read more......

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