Taxmageddon could kill the stock market and tailspin the economy into another and deeper recession...
It would cut the child tax credit by half, from $1,000 a child to $500.
The marriage penalty would return.
The tax on dividends, which many seniors rely on, would soar from 15 percent to as high as 39.6 percent.
A separate $124 billion cut in the payroll tax would end.
And a temporary fix to the alternative minimum tax would be erased. The tax originally was aimed at millionaires, but it could would hit some 34 million taxpayers next year.
"Almost the entire tax code has been put on a year-to-year lease, and in some cases, month-to-month lease, which is no way to run a tax system," Scott Hodge of the Tax Foundation said.
The expiring cuts would hit all income groups but those at low and middle incomes the hardest.
"Taxmageddon falls 70 percent on middle and low income families. That's because 60 percent of the Bush tax cuts were for middle- and low-income taxpayers," Dubay said. The payroll tax cut was aimed at the same taxpayers.
"No American will be unscathed at the end of this year," Hodge said. "Taxmageddon hits all of us."
And that could have a serious impact on the economy, including a drop in disposable income for individuals, which would put a damper on the overall economy.
foxnews.com
GZ |
