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FBN's Peter Barnes on the average federal tax increase for people who earn between $200K and $500K.
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And disappointing all right despite reaching a last minute deal last night on the fiscal cliff.
Many Americans will still be paying mall when it comes -- -- taxes in the new year -- -- joins us now with the breakdown data.
-- casually -- in the house did get that tax bill done last night and a bunch of new taxes are hitting taxpayers starting this year including.
From the tax bill last night we've been looking at their impact on different income brackets.
Each hour of the day here on -- this hour were up to the house holding come up 200000 to 500000.
And of the big change this week was the restoration.
Of the top marginal tax rate of 39 point 6% from the Clinton Era for individuals making more than 400000 a year and families making more than 450000.
A year.
Now those taxpayers will also see the rates on their capital gains and dividends rise to 20% from 15%.
Under this bill.
-- related to this bill however is that the new tax under the president's Health Care Reform law of three point 8% -- Medicare surcharge.
On investment income for individuals making more than 200000 a year and families making more than 250000.
A year.
But the tax increase that will hit almost all taxpayers lower income as well as copper is the expiration of the payroll tax cut from the last two years.
Let's look now at how the tax picture is shaping up for the higher income households though.
200000 to 500000 a year according to the Tax Policy Center their taxes will go up on average.
By about 2800.
Dollars this year most of that because of the higher payroll tax on the first 1101000 having come but some of these taxpayers will pay that Medicare surcharge.
And under the new tax law start seeing some of their itemized deductions limited a -- And those households in that group making over 40450.
Will start paying that -- 39 point six marginal rate.
-- that higher rate on cap gains and dividends Tracy Tracy nationally back.
Alright Peter thank you very much for the outlining that part of the tax hike and stick around next -- hour to see how the fiscal cliff Steele.
We'll affect Americans making between 500001.
Million dollars -- at play here by the way you can check out the details that every income bracket on Fox Business.
Dot com.
