The fiscal cliff’s tax increase is $536 billion high, according to a new, nonpartisan analysis released on Oct. 1 by the Urban Institute and the Urban-Brookings Tax Policy Center. Adding up to nearly $3,500 per household, taxes would rise by that much in 2013 if Congress and the White House don’t do something to change the course of policy. It would raise federal tax collections by a fifth from what they would have been without the cliff.
The study—”Toppling Off the Fiscal Cliff: Whose Taxes Rise and How Much?”—doesn’t analyze the automatic-spending-cut part of the fiscal cliff, which amounts to more than $100 billion in 2013. The combination would be enough to knock the entire, fragile U.S. economy back into recession, estimate many economists.
Source: Bloomberg Business Week