As a result of healthcare reform, the expiration of George W. Bush’s tax cuts and a few other pieces of legislation, what has been referred to (by opposition from the GOIP, mostly) as the largest tax hike in American history is coming down the pike.  Taxpayers should be aware of the new laws and how they will affect the bottom line of the average American family.  

One of the most significant changes comes from the reduction of the child tax credit, from $1000 per child to $500.  According to Representative Howard P. “Buck” McKeon, beginning January 31, Americans will pay an average of $1033 more in annual taxes.  The Republican Representative went on to say “The Democrats’ tax increases will mean higher taxes for married couples and anyone paying income taxes, in addition to new, stricter mandates and increases on small-business owners,”

Regardless of your political leanings, it’s wise to know what taxes are going to affect you.  According to the Joint Committee on Taxation, 35 million married couples will pay an average of $595 in higher taxes next year because of a reinstatement of the marriage penalty.  Another huge change is the elimination of the 10 percent tax bracket.  The Committee states that 88 million taxpayers will pay an average of $503 in higher taxes next year as a result of the first dollar of taxable income being subject to a 15 percent rate.

It’s a good idea to be prepared for the new, higher taxes to come.  If you get into trouble with either the IRS or state in which you live, tax relief is available through qualified, professional tax relief agencies.