Posted: Jan 2, 2013 4:32 PM
Updated: Jan 2, 2013 11:49 PM
WASHINGTON (Staff and Wire Reports) - The tax package negotiated by President Barack Obama and Senate Republicans and passed by Congress will protect most Americans from an income tax increase. But that doesn't mean that most of them won't see their taxes rise.
In fact, the vast majority of workers will pay higher federal taxes in 2013, largely because a temporary reduction in Social Security payroll taxes expired on New Year's Day. The tax package did nothing to prevent that from happening.
"That was done during the hard economic times, we brought it down we reduced it, (but) it will go back again," U.S. Rep. Henry Cuellar said.
Cuellar said the increase will be approximately $80 a month for minimum-wage workers.
A nonpartisan Washington research group, The Tax Policy Center, estimates that 77 percent of American households will face higher federal taxes in 2013 under the agreement. High-income families would get the biggest tax increases, but many middle- and low-income families will pay higher taxes too.