Who would foot the higher 2013 tax bill, in one chart

Under the emerging tax deal, meant to avert the “fiscal cliff,” Americans would pay roughly $200 billion more in taxes next year perhaps a bit less given the higher tax thresholds that are part of the proposal.

Here’s a chart looking at which income groups are likely to shoulder the burden of new taxes, based on the Tax Policy Center’s analysis of what would happen with a $250,000 threshold. Nobody’s quite modeled what the emerging deal would look like, but it shouldn’t change too dramatically.

As you can see, the top 1 percent of earners would feel much of the pain next year. But while it’s spread over a much broader part of the population, people in the middle and upper class would be paying a huge part of next year’s tax increase, too. That’s largely because of the expiration of the payroll tax cut.

In the below chart, the divisions represent percentiles of income. The amounts are in billions.

Chart: Who's footing 2013's higher tax bill?

Zachary A. Goldfarb, The Washington Post

Tagged , , , . Bookmark the permalink.

Leave a Reply