Families in Hurricane Sandy-ravaged New Jersey will face the highest tax increase as a percentage of their income – 6.82% or about $6,933 more in taxes — if Congress does not reach an agreement on the fiscal cliff tax issues during the lame-duck session, according to an analysis by the Tax Foundation.
In its study of how the fiscal cliff would affect typical families in each state, the Tax Foundation reports that if the numerous tax provisions that are due to expire on Dec. 31 are not changed, a four-person family in New Jersey with a median income of $101,682 will see its taxes go up at a rate 6.82 percent of its income, which translates into about $6,933.
The tax issues in question are the expiration of the Bush tax rates, which also include the elimination of the 10 percent tax bracket and the reduced deduction for married filers; ending the 2 percent cut to employee-side Social Security taxes; and the Alternative Minimum Tax.
Maryland was ranked second by the Tax Foundation because a four-person family there, with a median income of $106,707, would see its taxes go up 6.74 percent as a percentage of income, or about $7,194.
Connecticut, ranked third, would see taxes for a family of four go up by 6.62 percent, or $6,653.
All five states with the top tax increases are “blue states,” which President Obama won in the 2012 presidential election. But so are four out of the bottom five states with the exception of Kansas.
Top Five Tax Increases Tax Increases as % of Income
#1 – New Jersey $6,933 6.82%
#2 – Maryland $7,194 6.74%
#3 – Connecticut $6,653 6.62%
#4 – Massachusetts $6,632 6.53%
#5 – New Hampshire $5,660 5.81%
Forty states would see tax increases between $3,000 and $3,999. Six states would see an increase between $4,000 and $4,999 and three would see increases between $6,000 and $6,999.
New Hampshire would be the only state to see a tax increase between $5,000 and $5,999 and Maryland would be the only state to see a tax increase over $7,000.
Bottom Five Tax Increases Tax Increases as % of Income
#50 – Washington $3,362 4.12%
#49 – Hawaii $3,453 4.16%
#48 – Colorado $3,646 4.29%
#47 – Kansas $3,227 4.31%
#46 – Illinois $3,417 4.32%
The potential for tax increases on millions of U.S. taxpayers is still possible, the Tax Foundation explains, and would be especially devastating for lower-income families because of the changes to the child tax credit; the elimination of the 10 percent bracket, which would go back to 15 percent; and the reduced standard deduction for married filers — all of which are provisions in the 2001 and 2003 Bush tax cuts.
{Matzav.com Newscenter}
Taxes have always been alot of mombojumbo to me. And now I am even more lost.
According to the above NJ ranks first as highest increase at the rate of 6.82% which turns out to $6,933. So far making sense.
Now, Maryland is second at 6.74% which comes out to $7,194.
When I was in 3rd grade we used to do >,<, or =. Remember that? So from my memory and schooling I came to believe that
$6,933 < $7,194.
But the above artical says that I am wrong.
Now you know why so many people believe in simplifying our tax code.
Why is there a picture of Gov. Christie at the top of this post? He had nothing to do with either the Bush tax cuts or the budget limits due to expire.
We voted for him.
Everybody has to take it easy on President Obama. He has a heart and is a caring person.