The average family of four in Lynchburg would pay $3,578 more in taxes if the Bush-era tax cuts expire January 1, according to Gerald Prante, assistant professor of economics at Lynchburg College. Dr. Prante and Austin John, a Lynchburg economics student, calculated marginal tax rates — the highest rates on the highest levels of income — for all 50 states. They combined state, federal and, where applicable, local income taxes, plus payroll taxes for Social Security and Medicare and included the deductibility of some taxes. Wealthy Californians would be hit the hardest.
Read more here: http://blogs.sacbee.com/capitolalertlatest/2012/12/high-income-californians-may-pay-nations-highest-tax-rate.html#storylink=cpy
How would the typical Lynchburg family be affected by the fiscal cliff? Here is what I got for 3 scenarios (fiscal cliff, tax cuts all extended except for payroll tax cut, and 2012 law which means everything is extended including payroll tax cut).
The income figures (median) come from the Census Bureau’s American Community Survey for the Lynchburg MSA in 2010, which I then adjusted for expected per capita earnings growth in Lynchburg MSA. The results show that a married couple with 2 kids would pay over $3,500 more in taxes if the fiscal cliff was allowed to happen.
Tax Liabilities (Income + Payroll) for Typical (Median) Lynchburg Taxpayers under Various Scenarios
| Family Type |
2013 Income |
Fiscal Cliff |
2012 Law w/out payroll tax cut |
2012 Law |
| Married family with no children |
$68,789 |
$12,888 |
$11,686 |
$10,310 |
| Married family with 2 children under 17 |
$68,789 |
$10,718 |
$8,516 |
$7,140 |
| Single mother with 1 child under 17 |
$28,587 |
$1,977 |
$885 |
$313 |
| Single householder |
$27,068 |
$4,631 |
$4,183 |
$3,642 |
Sources: Census Bureau and Tax Foundation
