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View Diary: Public ready to blame Republicans if fiscal cliff talks fail (132 comments)

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  •  But not instantly catastrophic. (7+ / 0-)

    There would be an economic impact, but the nasty numbers from the CBO are predicated on the sequester remaining in effect for the entire year.

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    Formerly known as Jyrinx.

    by Code Monkey on Tue Nov 13, 2012 at 12:21:39 PM PST

    [ Parent ]

    •  But they will start in December (0+ / 0-)

      as soon as it's clear there won't be a deal.  The layoffs and the slowdown in growth will start then.  (Imagine what the Christmas season will be like for retailers once it gets out that a middle class family of four with household (two incomes) totaling $75,000 could owe the IRS an additional $4000 or so this coming April because of the AMT:

      According to estimates by the Tax Policy Center, more than half of all married couples will owe an additional tax of around $4,000 unless Congress acts. And more than a third of families with children will fall subject to the AMT, with parents of three or more children facing an extra tax of $4,700.

      Among married couples with at least two children and adjusted gross income between $75,000 and $100,000, the center estimates that 84 percent will face a significantly higher tax bill this year because of the AMT.  

      I don't know about you, but I'd put a married couple with two kids, each making $40 - $45,000 a year in the middle class, especially if they live in an urban area. And they will definitely feel that extra $4000 -- on top of the increase in withholding and the increase in payroll taxes.  

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