Going over the fiscal cliff could mean a $2,200 hike in income taxes for the average North Carolina family, according to a new White House Report on potential impacts to N.C. families.
President Barack Obama continues his campaign this week pushing for higher income tax rates on top earners in order to avoid the fiscal cliff. The White House warns that failing to reach an agreement would result in higher taxes for all Americans.
The White House released a report(see below) late Wednesday outlining some of the potential impacts to North Carolina families. An average N.C. family of four earning the median income of $63,700 could see their income taxes rise by $2,200. Families could also receive a smaller Child Tax Credit, and 1,193,000 of low‐ and moderate‐income N.C. families could lose access to the tax credit in its entirety. Some 300,000 middle‐class N.C. families could lose access American Opportunity Tax Credit to help pay for college.
“Asking millionaires and billionaires to pay their fair share is an essential component of the President’s plan for balanced deficit reduction,” the White House report states.
Republicans have countered with a proposal calling for $800 billion in new revenue by closing loopholes and deductions, but not increasing tax rates on any Americans.