Would you like to know what the new fiscal tax deal will cost YOU?
Visit http://interactive.taxfoundation.org/taxcalc/#calculator to calculate what the fiscal cliff tax deal means to your federal income tax liability for 2013, and compare it to what your taxes would have been with (1) 2012 tax laws continued or (2) full effects of going “over the cliff”. When we run this calculation for someone married with 2 children earning $750,000 with $100,000 of itemized deductions, the 2013 federal income tax liability goes up by about $20,000 (and would have been up about $35,000 if no fiscal cliff compromise). The same taxpayer at $1.5 million of income sees about a $65,000 federal income tax increase (and would have been $80,000 if no compromise). Clearly, the attack on wealth continues. The increased tax costs mean smart decisions that avoid some of these taxes have increased value as compared to prior years.