Editor’s Note: This article was written and submitted by C. Zawadi Morris
Yorkers will see a spike in taxes taken out of their first paychecks of
2013 — a provision of the fiscal cliff deal that allows for a raise in
Social Security payroll taxes. But the spike would have been much higher
had it not been for the fiscal cliff deal, The New York Post reports.
higher tax provision – 6.2 percent, up two points from the previous 4.2
percent – is a part of an effort to pay for the larger-than-life
national debt and also to stimulate economic growth.
that make $50,000 or less, that means an extra tax payment of $579 a
year, while families earning between $500,000 and $1 million will see an
average rise of nearly $15,000 in their tax bills, according to the Tax
Other increases include:
* The expiration
of Bush-era tax cuts, including the disappearance of the
$1,000-per-child credit and higher investment and estate taxes.
A 3.8 percent surtax on certain investment income for individuals
earning more than $200,000 per year ($250,000 for couples) as part of
Obama’s 2010 healthcare law.
* The tax rate on inherited estates
will go up from 35 to 40 percent, though the first $5 million are exempt
for individuals and $10 million for families.