Tuesday, August 3, 2010

Garwood's Congressman asks for Tax-Cut Extension

In a letter to President Obama Rep. Leonard Lance calls on the extension of the, so-called, BushTax Cuts. Lance writes, New Jersey’s working families and small businesses pay among the highest taxes in the nation. They simply cannot afford a massive federal tax increase.

According to a report by the non-partisan Tax Foundation, Garwood's congressional district, which includes
Westfield and Cranford, would see a sizable tax increase if tax cuts are allowed to expire at the end of the year.

The Wall Street Journal broke down some of the added costs. The Journal reports for a typical single filer with adjusted gross income of around $40,000 it might be about $400 a year. For someone on $80,000, about $1,600. How about married couples filing jointly? They'd get hit with higher tax rates and a lower standard deduction. (It was raised in 2001). A couple earning $80,000 a year in adjusted gross income might pay about $2,200 extra. A married couple on $160,000 a year: Maybe $5,500 extra. If they have children it would be more, as the child tax credit would revert from $1,000 to $500, the paper reports.


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