Over the Cliff? Find New Tax Online
A new online graphic lets viewers calculate how much their payroll taxes would increase if the U.S. falls off the fiscal cliff.
A new online interactive graph lets U.S. viewers find how much more they may pay in federal taxes if Congress doesn't come to a budget agreement by Jan. 1, 2013.
The fiscal cliff is a deadline when several U.S. tax breaks will expire. Across-the-board federal budget cuts will occur at the same time. The U.S. may avoid the cliff if Congress agrees to a budget before Jan. 1, 2013, but if the country does "fall off the cliff," nearly every worker in the U.S. will see his or her federal tax rates increase.
By how much, exactly? Symmetry Software, a company that makes online payroll calculators, is offering its own calculations. In a new online graph, viewers can check how much more will be withheld from their paychecks if the U.S. can't pull back from the fiscal cliff. They can see what will happen to other people, too — the graphic lets viewers check out estimated taxes on a range of incomes from $5,000 to $300,000.
For example, a single worker earning $45,000 a year — a little more than the national wage average — would pay $1,560 more in payroll taxes after the fiscal cliff, for a total of about $11,000.
Symmetry Software's numbers are based on federal tax rates before 2001, when President George W. Bush took office and Congress enacted major tax reductions that are scheduled to expire in 2013.
In a statement, Symmetry Software issued some caveats. The number of allowances a person can claim may change after the fiscal cliff, Symmetry said. And, of course, the graphic doesn't calculate exact taxes for every viewer, just estimates for different salaries and filing statuses.