How far will your family fall off the fiscal cliff?
Thursday, December 27, 2012 11:31 AM
The Tax Foundation, a nonpartisan tax research group based in Washington D.C., has put together a study of which states and metropolitan areas across the country will be hardest hit under the so-called "fiscal cliff."
The group found that those states and cities with predominantly high-income residents or predominantly low-income residents would pay, proportionally, more in increased taxes if Congress does nothing to prevent automatic spending cuts and tax hikes from taking effect in 2013.
According to the group's study, Iowa City is one of the metropolitan areas that would be least affected. The median income for a four-person family there is $77,078, which means an average 4.2 percent federal income tax increase of $3,272. That ranks the city as 350th lowest of 366 metropolitan areas studied, according to the tax group's website.
The Des Moines-West Des Moines area, with a median income of $86,967 for a family of four, ranked 216th out of 366 metro areas. That family would pay about 5 percent more in federal income taxes.
The website also has a calculator that allows you to figure how your tax bill will change from the 2011 tax year to 2013 if Congress makes no changes, and to how your taxes would change under President Barack Obama's proposal.
Click here to figure the changes in your tax bill.