WEB EXTRA: How Tax Increases Will Affect Households

Created: 01/02/2013 7:06 AM KSTP.com By: Jennie Olson

The tax package passed by Congress will prevent one set of tax increases from hitting the vast majority of Americans, but it won't stop them all. A temporary Social Security payroll tax reduction is expiring, hitting nearly every wage earner, and income taxes on the wealthy are going up too.
    
How the tax increases will affect households at different income levels:
    
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Annual income: $20,000 to $30,000
    
Average tax increase: $297
    
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Annual income: $30,000 to $40,000
    
Average tax increase: $445
    
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Annual income: $40,000 to $50,000
    
Average tax increase: $579
    
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Annual income: $50,000 to $75,000
    
Average tax increase: $822
    
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Annual income: $75,000 to $100,000
    
Average tax increase: $1,206
    
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Annual income: $100,000 to $200,000
    
Average tax increase: $1,784
    
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Annual income: $200,000 to $500,000
    
Average tax increase: $2,711
    
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Annual income: $500,000 to $1 million
    
Average tax increase: $14,812
    
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Annual income: More than $1 million
    
Average tax increase: $170,341
    
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Source: Tax Policy Center

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