PLEDGE NOW
Here and Now with Robin Young and Jeremy Hobson
Public radio's live
midday news program
With sponsorship from
Mathworks - Accelerating the pace of engineering and science
Accelerating the pace
of engineering and science
Wednesday, January 2, 2013

Fiscal Cliff Deal Means Higher Tax Bills For Most Americans

The lights of the U.S. Capitol remain lit into the night as the House continues to work on the "fiscal cliff" on Tuesday, Jan. 1, 2013. (AP/Jacquelyn Martin)

The lights of the U.S. Capitol remain lit into the night as the House continues to work on the “fiscal cliff” on Tuesday, Jan. 1, 2013. (AP/Jacquelyn Martin)

While less than 1 percent of households will face an income tax increase this year under the fiscal cliff plan approved by Congress, a whopping 77 percent will pay more in their Social Security payroll tax.

The payroll tax will increase by 2 percentage points from 4.2 to 6.2 percent on income up to $113,700, affecting 160 million Americans. That means a person making $50,000 a year will shell out an additional $1,000 this year.

The country’s wealthiest Americans will also be paying more. Congress returned the marginal tax rate to 39.6 percent for individuals on income over $400,000 and $450,000 for couples.

But the biggest hit to wealthy Americans comes from part of the bill that restores limits on deductions and exemptions to American families making more than $300,000.

They will still be able to claim the same deductions on income up to $300,000, but income over that amount will face limits in deductions.

But overall, very few households making less than $500,000 will face an income tax increase.

Guest:

  • Binyamin Appelbaum, New York Times

Please follow our community rules when engaging in comment discussion on this site.
Robin and Jeremy

Robin Young and Jeremy Hobson host Here & Now, a live two-hour production of NPR and WBUR Boston.

July 30 37 Comments

Oxford Conservationist Talks About 7 Years Of Tracking Cecil

The 13-year-old lion was not only a tourist favorite, but also, a research animal. The beloved lion was being studied by the Oxford University Conservation Unit.

July 30 27 Comments

NAACP To Begin 860-Mile ‘Journey For Justice’ March

The march, which will travel from Selma, Ala. to Washington, seeks to highlight vulnerable communities subject to regressive voting rights.

July 29 2 Comments

Garden-Inspired Cooking With Kathy Gunst

We visit our resident chef's garden in Maine, make gazpacho and get a recipe for a plum tart with hazelnut crust.

July 29 775 Comments

Two Sides Of The GMO Debate

We moderate a debate over a bill that would bar states from forcing food manufacturers to label genetically modified foods.