Indiana taxpayers rank 13th in a list of states’ residents who would be most affected if the country goes over the so-called fiscal cliff, according to a report released Monday.
Almost 90 percent of Americans would face higher taxes next year if Congress fails to avert the scheduled $400 billion in tax hikes and $100 billion in spending cuts. Economists predict going over the fiscal cliff could send the country back into recession.
Taxes for the typical Hoosier family would increase by 5.27 percent of income, based on estimates using Census and IRS data, said the Tax Foundation, a non-partisan, Washington-based research organization.
A family with an income of $69,328 – the median four-person household income for Indiana last year – would pay an additional $3,653 in taxes next year, according to the study.
Joe Schenkel, president of Consumer Credit Counseling Service, said many of the organization’s clients wouldn’t be able to afford such a hike in their expenses. The increase averages slightly more than $300 a month.
“These figures scare me,” he said after learning of the projected annual and monthly tax increases for Hoosiers.
For more on this story, see Tuesday's print edition of The Journal Gazette or visit www.journalgazette.net after 3 a.m. Tuesday.