Cost To Montana Families if U.S. Jumps the Fiscal Cliff
A new study from the Tax Foundation breaks down the amount of tax increases that will go into effect on January 1, 2013 if Congress cannot negotiate a new tax scheme.
In the study titled How Would the Fiscal Cliff Affect Typical Families in Each State?, author Nick Kasprak crunches the numbers to produce tax results for the average Montana family of four in both 2011 and 2013. The results are disturbing.
In a post-fiscal cliff 2013 world, the average Montana taxpayer will be shelling out an extra $3,258 compared to 2011. As a percent of income, that is an increase of nearly 4.96%.
$1,314 of that $3,258 will come from the return of the payroll tax. The loss of the child tax credit will add another $1,000 and the $944 left will come out of various Bush era tax deductions and extensions that will disappear.
In perspective, Montana will have little to complain about compared to New Jerseyites who will suffer a median household tax increase of nearly $7,000.