WASHINGTON - The prospect of the American economy careening off a cliff overshadowed a tax increase that takes effect immediately, rich or not.
Even with the deal on Capitol Hill, the so-called payroll tax is scheduled to bounce back up to 6.2 percent from 4.2 percent in 2011 and 2012.
In practical terms, this amounts to a $1,000 tax increase for someone earning $50,000 a year and a $2,200 tax increase for someone earning $150,000.
Even workers taking home less than $20,000 annually will be impacted, paying roughly $100 more.
"I think it will have a negative effect," says Neil Buchanan, a law and economics professor at George Washington University.
(Excerpt) Read more at wtop.com ...
