Short Answer: Your Taxes Will Go Up


90.3 WBHM The new deal to avoid the fiscal cliff means the average Alabamian will pay an additional $579 dollars a year in taxes, but some will pay much more. The tax package passed by Congress yesterday prevents one set of tax increases from hitting most Americans, but it won't stop them all. A temporary Social Security payroll tax reduction will expire, meaning nearly every wage earner will see taxes go up. The wealthy also face higher income taxes.

The median household income in Alabama is just under $43,000. How the tax increases will affect households at different income levels:


Annual income: $20,000 to $30,000

Average tax increase: $297


Annual income: $30,000 to $40,000

Average tax increase: $445


Annual income: $40,000 to $50,000

Average tax increase: $579


Annual income: $50,000 to $75,000

Average tax increase: $822


Annual income: $75,000 to $100,000

Average tax increase: $1,206


Annual income: $100,000 to $200,000

Average tax increase: $1,784


Annual income: $200,000 to $500,000

Average tax increase: $2,711


Annual income: $500,000 to $1 million

Average tax increase: $14,812


Annual income: More than $1 million

Average tax increase: $170,341


~ Associated Press and Tanya Ott, January 2, 2013