The Deep Impact of ‘Taxmageddon’ On Missouri
The Heritage Foundation recently released a study illustrating the impact by state and congressional district of the forthcoming “Taxmageddon.” The U.S. economy faces a $494 billion tax increase due to the expiration of several tax cuts, including the Bush tax cuts and payroll tax cuts. Thus, the U.S. faces a massive tax increase on January 1, 2013, unless the law is changed.
The typical family faces a tax increase of $4,138. Low-income workers face an average tax increase of $1,207 while the average retiree faces an $857 increase.
As a whole, Missouri will face an additional $7,858,563,552 in increased taxes, which amounts to $2,634 per tax return. Here is the impact of the upcoming tax hikes on taxpayers in each Congressional District in Missouri:
- Congressional District 1 (Rep. Wm. Lacy Clay): $2,338
- Congressional District 2 (Rep. W. Todd Akin): $4,765
- Congressional District 3 (Rep. Russ Carnahan): $2,981
- Congressional District 4 (Rep. Vicky Hartzler): $2,009
- Congressional District 5 (Rep. Emanuel Cleaver): $2,507
- Congressional District 6 (Rep. Sam Graves): $2,692
- Congressional District 7 (Rep. Billy Long): $2,317
- Congressional District 8 (Rep. Jo Ann Emerson): $1,677
- Congressional District 9 (Rep. Blaine Luetkemeyer): $2,424
The prospect of further tax hikes threaten to weaken an already stagnant economy. Policymakers have a diminishing window of opportunity to stave off these looming tax increases.
