Your Taxes WILL Go Up — and Add Another $4 Trillion to Our Deficit

Washington – Taxes for most Americans will still go up this year despite declarations from President Obama and others touting Tuesday night's fiscal crisis deal as a victory for middle-class workers.

At the same time, tax relief that was included in the package comes at a cost -- contributing, along with new spending, nearly $4 trillion to the deficit over the next 10 years, adding to the nation's more than $16 trillion debt.

But there will be federal tax hikes in 2013. That's because the legislation pushed through the Senate and House on Jan. 1 does nothing to prevent a temporary cut in the Social Security payroll tax from expiring. That means, under the agreement brokered by the White House and Senate Republicans, 77 percent of American households will be forced to fork over higher federal taxes in 2013.

Households making between $40,000 and $50,000 will face an average tax increase of $579 in 2013, according to the Tax Policy Center's analysis. Households making between $50,000 and $75,000 will face an average tax increase of $822.

For most families, the increase will end there. But for top earners, taxes will get considerably higher this year.  Full Article