I have received a number of inquires regarding the personal impact of the pending “fiscal cliff.” Unfortunately there are no easy answers to these questions, but there is some help available. The Urban Institute and Brookings Institution’s jointly run Tax Policy Center has created a fiscal cliff tax calculator that shows how various plans under consideration might affect a taxpayer’s liability.
The impact in one scenario has a family with two children, earning $147,000 a year—could see their tax liability increase by $7,323 if there isn’t a resolution to the “fiscal cliff.”
The calculator is located below: