The Tax Foundation released a report today showing the tax impact on a median four person family for each state if Congress and the President allow the country to go over the so-called "fiscal cliff." New Jersey would see the largest tax increase of $6,933 or 6.82% on median family income of $101,682. The smallest tax increase would be experienced by the state of Washington at $3,362 of 4.12% on median family income of $81,582. The Tax Foundation's report, How Would the Fiscal Cliff Affect Typical Families in Each State?, is insightful and well worth the read. Given consumers account for 70% of economic activity, this level of tax increase would undoubtedly be contractionary to the economy's growth.
|From The Blog of HORAN Capital Advisors|