taxes

How expiring Bush tax cuts will affect you

Taxes and the average Joe and Jill
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Taxes and the average Joe and Jill

When Congress left Washington, D.C., in September to campaign for the November election, it also left taxpayers in limbo about what income tax rates they will face next year.

The current tax rates are set to expire on Jan. 1, 2011. The consensus on Capitol Hill is that most of the tax cuts should be left in place. Extending the tax cuts, however, has been stymied by continuing Congressional debate over what changes, if any, should be made to the laws that affect higher-income taxpayers.

But if lawmakers can't reach an agreement and let the Bush-era tax cuts expire on Jan. 1, 2011, all taxpayers -- regardless of income -- will face higher IRS tax bills.

Representatives and Senators have focused on the rich and what the tax cuts mean to them. But here at Bankrate, we thought it worthwhile to give the rest of the taxpaying public some attention.

Here's a look at what folks in lower-income brackets might face if the current tax cuts disappear.


 

 

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