In the nick of time, and amid much political drama, Congress passed the American Taxpayer Relief Act on New Year's Day—averting massive tax increases for nearly all earners that were slated to take effect Jan. 1.
Even so, millions of people soon will feel something less than relief from the new law.
The bill approved in Congress to avert the fiscal cliff would bring the first major tax increase on high earners in 20 years. Laura Saunders breaks down how new tax increases will impact across different tax brackets. Photo: AP.
While the top 1% of taxpayers will bear the biggest burden, many other families, affluent and poor, will pay more as well.
And they have this infographic of all these sad poor people facing an insecure future
First there's the poor retired couple, scraping by on only $180,000 - but since they're borderline poverty stricken their taxes don;t go up - but what about single moms barely coping with raising two kids and a pitiful income of $260,000 - she has to pay an outrageous $3,356 more in taxes! But this is peanuts compared to the working guy, married with four kids on his starter salary of $650,000. This poor stiff has to scrape together an additional $21,608 more in taxes.
No wonder they all look so sad.
Given that the poorest of their examples earned more than four times the median houshold income (and the least poor earned over 13 times) one wonders about how grounded in reality the Wall Street Journal is.
I would imagine 80% of Americans would hapily trade incomes and tax burdens with them, and look a damn sight happier about it.