A new report issued by the Heritage Foundation quantifies the impact by state and congressional district of the widely-heralded “Taxmageddon.” Absent any change in the law, it will deliver the full body slam of a $494 billion tax hike to the U.S. economy on Jan. 1, 2013.
The higher taxes won't just affect high income earners, either. Low income workers will be socked with a $1,207 average tax increase, retirees will pay $857 more on average, and "Millenials" (the youngest adult generation) a $1,099 average tax increase.
The hit on Michigan taxpayers is projected at $14,307,261,568; the average increase per tax return is pegged at $2,801. These range from $1,536 in the district represented by Rep. John Conyers, to $3,800 in that of outgoing Rep. Thaddeus McCotter. Here’s the full list:
Worse, this is just for 2013. Heritage estimated in an earlier piece that, as Obamacare kicks in, that legislation will add another $502 billion in additional taxes over 10 years.
How all of this will play out is anyone’s guess, but at this moment "Taxmageddon" remains on the books as the law of the land.
Americans nervous about their jobs, investors, small business owners and other job providers can only hope that Washington comes to its senses before the reality of upcoming higher taxes tips this nation into a full-blown recession.