The budget deal passed by the U.S. Senate today would raise taxes on 77.1 percent of U.S. households, mostly because of the expiration of a payroll tax cut, according to preliminary estimates from the nonpartisan Tax Policy Center in Washington.
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Dawn breaks at the U.S. Capitol in Washington, D.C., U.S., on Monday, Dec. 31, 2012. Photo: Jay Mallin/Bloomberg
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Dec. 31 (Bloomberg) — Grover Norquist, president of Americans for Tax Reform, talks about negotiations between U.S. lawmakers over the so-called fiscal cliff of $600 billion in automatic tax increases and spending cuts set to start at midnight. Norquist speaks with Erik Schatzker on the Bloomberg Television special “America’s Fiscal Debate.” (Source: Bloomberg)
3:27
Dec. 31 (Bloomberg) — Jim Rickards, senior managing director at Tangent Capital Partners, and Stanley Crouch, chief investment officer at Aegis Capital, talk with Bloomberg’s Matt Miller about the impact of the fiscal cliff on the U.S. economy. They speak on Bloomberg Television’s “Bloomberg Rewind.” (Source: Bloomberg)
More than 80 percent of households with incomes between $50,000 and $200,000 would pay higher taxes. Among the households facing higher taxes, the average increase would be $1,635, the policy center said. A 2 percent payroll tax cut, enacted during the economic slowdown, is being allowed to expire as of yesterday.