Six Months to Go Until The Largest Tax Hikes in History

What will be the effect on the economy - and on your family budget?

By Danny

Anybody else looking at sources like this?

• Six Months to Go Until The Largest Tax Hikes in History

Here are the tax brackets for 2010, married filing jointly:

$0 – $16,750 10% 10%
$16,750 – $68,000 15%
$68,000 – $137,300 25%
$137,300 – $209,250 28%

(Presumably that covers most here, but it goes up from there. . .)

Unless congress acts, on January 1 of 2011 these will jump to:

$0 – $16,750 15%
$16,750 – $68,000 28%
$68,000 – $137,300 31%
$137,300 – $209,250 36%

For someone making taxable of $68,000 per year, that is a tax increase of $7,500 per year in federal tax.

Also, the child tax credit drops from $1000 to $500 per child. So if you have four kids, that's another $2,000 per year in federal tax on top of the $7,500.

Given the size of the deficit, and the spending habits of the present congress, what are the chances they will fix this?

What will be the effect on the economy - and on your family budget?

Editor's addendum & disclosure: Gentle reader Danny submitted the eye-opening main article; your blogmeister took the editorial liberty of providing the helpful links.... and the following bonus video, of course. (We do hope Gentle Reader Danny will approve of these editorial additions):


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