Despite congress finally passing a new tax package on New Year's Day, most Americans will pay more federal taxes in 2013 than before, according to the Tampa Tribune.
While the package will protect about 99 percent of Americans from an increase in income tax, congress failed to prevent a temporary reduction in the Social Security payroll tax from expiring. This means a former two percent cut on most residents taxes will no longer apply, thus raising the cost of one's federal taxes.
Because of this, about 77 percent of American households will face higher federal taxes in 2013, according to nonpartisan Washington research group, The Tax Policy Center. High-income families will be hit the hardest, but many middle- and low-income families will feel the hit too.
According to The Tax Policy Center, households earning between $40,000 and $50,000 per year will face an average tax increase of $579, while households making between $50,000 and $75,000 will face an average increase of $822.
As a part of President Obama's 2010 healthcare law, higher-income families will begin paying more in taxes this year as well. A 3.8 percent tax will now be imposed on investment income for those making more than $200,000 per year and couples making more than $250,000 per year.
On average, households making between $500,000 and $1 million will face an average tax increase of $14,812 in 2013, while households earning more than $1 million will face an average increase of $170,341.
Think this is fair? Unbalanced? Right? Let us know your thoughts in the comments below.
