What Washington's Fiscal Stalemate May Mean for You

As Jan. 1 approaches without a budget agreement between President Obama and Congress, here's a look at how your finances may change.

Posted:
 
fiscalcliff122812575hc
iStockphoto/Thinkstock

While many of us are cleaning up our Christmas trees and putting away wrapping paper, President Obama and Congress are still hammering out an agreement to avoid the fiscal cliff. But if Obama and Republican Speaker of the House John Boehner do not come to terms by Jan. 1, NBC News has a few notes on what Americans can expect financially.

Experts also say that even if no deal is reached by Jan. 1, retroactive fixes and other dealmaking could prevent the most harmful effects from ever hitting most Americans.

Still, the Tax Policy Center, a nonpartisan think tank, says that nearly 90 percent of households would be affected if we go over the fiscal cliff completely and no deal is reached ...

But the Tax Policy Center says that on average, taxes would go up for every income group, from the poorest taxpayers to the most wealthy:

* Americans in the lowest 20 percent of the income scale could pay an average of about $400 more in taxes.

* Middle-income households could pay about $2,000 more in taxes, on average.

* The top 20 percent of taxpayers could pay about $14,000 more a year in taxes, on average.

* The 1 percenters could pay an average of $120,000 more in taxes.

Read more at NBC News.

Like The Root on Facebook. Follow us on Twitter.

Comments
The Root encourages respectful debate and dialogue in our commenting community. To improve the commenting experience for all our readers we will be experimenting with some new formats over the next few weeks. During this transition period the comments section will be unavailable to users.

We apologize for any inconvenience and appreciate your continued support of The Root.

While we are experimenting, please feel free to leave feedback below about your past experiences commenting at The Root.
Must-See Family Attractions
July 29 2014 2:13 PM