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Thousands of Massachusetts Families Would Be Affected by Federal 'Fiscal Cliff'

A study finds that Bay Staters will pay more if the child and college tuition tax credits expire.

More than half a million Massachusetts families will pay more in taxes if the federal government doesn't reach an agreement on the tax code by the end of the year, a study reported in the Boston Globe found

The child tax credit is set to expire if Congress doesn't reach a deal. The tax credit affects 562,000 lower- and middle-class familes, currently saving each about $1,000 a year.

Another group of tax credits set to expire includes college tuition credits, an increase that would affect 217,000 families, according to the story.

Small businesses would be affected if the federal government falls off the "fiscal cliff" as well. If no deal is brokered, next year these businesses will only be able to claim $25,000 in deductions on new investments instead of the $250,000 deduction they now enjoy.

Roy Mathis December 14, 2012 at 03:06 AM
Senior mature ADULTS will have to contend with significant tax increases on their variable income from the investments they made for their retirement years. Capital gains taxes could more than double; tax rates on interest and dividends surge to twice current rates. Seniors are major contributors to non-profits; form the vast portion of church giving. Spending and lifestyle for Seniors can be expected to drastically SHRINK to lowest SeniorBuying Power in history! At a time when Washington and the media seem to be living in complete denial regarding surging inflation Happy Times for the nation's mature adults are over!

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