77 percent will pay more in 2013 under deal

January 1, 2013

The average U.S. worker would pay $679 more in taxes this year under the fiscal cliff deal passed by the Senate early Tuesday morning, while the average member of the top 1 percent of earners would pay $73,633 more, according to Tax Policy Center analysis.

In all, 77 percent of taxpayers will pay more in 2013 than they did in 2012, according to the analysis if the House passes the deal.

For people earning under $250,000, the only tax change is the expiration of the payroll tax holiday. Taxes on salaries would rise by 2 percent and affect only the first $110,100 of income.

Americans at the upper echelon of earners would face the biggest new burden under the plan, after the payroll tax cut expires and new rates are levied on income, estates, capital gains and dividends.

People earning $200,000 to $500,000 would see their taxes go up by $2,711, mostly due to the payroll tax. Earners making $500,000 to $1,000,000 would see their taxes jump by an average of $14,812.

And people earning more than $1 million would face a tax increase of an average $170,341.

These figures are all compared with 2012 tax bills – when a host of provisions holding down taxes were part of the law. Almost all of them are set to expire Jan. 1 if the House does not pass the Senate deal or some similar legislation.

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Elizabeth Ward · January 1, 2013