Friday, September 3, 2010

Calculator shows how different tax proposals would affect individuals

At the Colorado Fiscal Policy Institute, we've been making the case for letting tax cuts for the richest Americans expire. We helped coordinate an opinion piece in The Denver Post along those lines last month, for example.

Now an advocacy group called Citizens for Tax Justice has added some vital additional facts to the mix. A calculator on the organization's website shows how your tax liability would change under various scenarios for letting the tax cuts expire, or not.

Take the example of a family with annual income of $69,745 (the statewide median in 2008) with no capital gains, stock dividends or other income. Add in two children and some other assumptions entered into the calculator, and you get the results shown in the image below. Click the image for a view large enough to read. Try it out for yourself. Let us know your reaction in the comments section of this blog.

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