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How much will your taxes go up if US falls off 'fiscal cliff'? (+video)

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The payroll taxes will take effect in “the first paycheck,” says Roberton Williams, a senior fellow at the TPC in an interview. “Roughly 2 percent more will be taken out.”

Congress and the White House had agreed to extend the temporary cut in Social Security taxes only through the end of this year in an effort to give the economy a boost. Neither party has shown an inclination to renew those cuts in part because it takes money away from the Social Security trust fund and increases the budget deficit.

Taxpayers will also notice that their employer is likely to receive a new schedule of withholding from the government. This will increase the amount of money automatically withheld.

This reflects the expiration of the various tax cuts.

Looking at taxes paid on cash income, here’s how the TPC estimates the looming deadline could affect you:

Households that make under $20,113. The average tax bill for these 40 million households will rise $412, reducing their after-tax income by 3.7 percent. Currently, they pay 0.6 percent of their income in taxes; in 2013 it will rise to 4.3 percent, an increase of 3.7 percentage points.

Households that make up to $39,790. The average tax bill for these 36 million households will rise $1,231, reducing their after-tax income by 4.5 percent. This is an increase of 4.1 percentage points in their average federal-tax rate.

Households that make up to $64,484. The average tax bill for these 31 million households will rise $1,984, reducing their after-tax income by 4.4 percent. This is an increase of 3.8 percentage points in their average federal-tax rate. 

Households that make up to $108,266. The average tax bill for these 26 million households will rise $3,540, reducing their after-tax income by 5.1 percent. This is an increase of 4.2 percentage points in their average federal-tax rate.

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