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Fiscal Cliff 2013 Predictions Run the Gamut - How Much Will It Cost You?
Is the US taxpayer headed over the fiscal cliff in 2013?
Predictions have run the gamut as the US Congress has stalled on taking action to keep taxpayers from paying more on their 2013 income taxes.
Some are convinced the fiscal cliff will be initiated on Jan. 1, 2013 due to inaction by congress while others predict a last minuted deal.
A deal must be made by midnight on Dec. 31 to avert the cliff and President Obama is aware that the clock continues to tick.
"I was modestly optimistic yesterday, but we don't yet see an agreement. And now the pressure's on Congress to produce," Obama told NBC's Meet the Press on Sunday.
USA Today reports that at midnight on Dec. 31, 2012:
"Almost every tax cut enacted since 2001 will expire, including the Bush-era tax cuts, the 2009 stimulus tax cuts, a short-term fix to protect taxpayers from the Alternative Minimum Tax, and a tax package that includes popular tax provisions to encourage things such as charitable giving. The Social Security payroll tax will also expire, as will a law that affects how doctors who treat seniors through Medicare are paid. Congress is also negotiating an extension of long-term unemployment benefits for 2 million Americans," those will also expire.
How much will that cost?
CNN money reports that people who make less than $20,000 a year would have to pay an average increase of $590 in taxes, middle income workers making $40,000 - $64,000 a year could see an increase of almost two-thousand dollars taken out of their checks, and those earning more than $108,000 will be paying up to $13,000 more in taxes.
What else happens?
USA Today notes the second part of the Fiscal cliff 2013 is across-the-board spending cuts.
$109 billion in across-the-board spending cuts for 2013 begin taking effect and half of the cuts come from national defense programs.
It's even more painful as "Since the fiscal year starts Oct.1, these cuts will have to come from the remaining nine months of fiscal 2013, which will make them more dramatic than if they had started at the beginning of the fiscal year," USA Today reports.
Talks are expected to resume on Monday as no deal was reached on Sunday.
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