• The Heritage Network
    • Resize:
    • A
    • A
    • A
  • Donate
  • Profiles in Tax Hikes: A Florida Nurse's Tax Changes in 2013

    Photo: Robin Nelson/Zuma Press/Newscom

    What will the tax hikes of January 1, 2013, mean to real Americans?

    Let’s say you are a black woman who has a rewarding, though extremely challenging, career as a registered nurse. You’re nearing retirement—you’re 58, living in the Miami-Fort Lauderdale metropolitan area. After working hard for several decades, you and your husband have worked your way up to a total family income of more than $200,000.

    Your estimated tax hit from Taxmageddon: approximately $21,200, according to figures from The Heritage Foundation’s Center for Data Analysis (CDA).

    These numbers are based on a real person in the IRS’s anonymous database, expressed as a range of a total family’s adjusted gross income. Heritage Research Coordinator Patrick Tyrell, along with Dan Roberts and CDA Director Bill Beach, examined the cost of Taxmageddon to average Americans in a variety of locations across the country. The CDA analysis is based on a range of adjusted gross incomes and Zip codes of residents. (For more on Heritage’s methodology, see the end of this post.)

    Earlier this year, Heritage calculated a broader impact cost for several groups, based on average income:

    The number $500 billion is rather large and abstract, so The Heritage Foundation has broken down the expected tax increases per person just for 2013:

    • Families with an average income of $70,662: tax increase of $4,138
    • Baby boomers with an average income of $95,099: tax increase of $4,223
    • Low-income workers with an average income of $24,757: tax increase of $1,207
    • Millennials with an average income of $23,917: tax increase of $1,099
    • Retirees with an average income of $42,553: tax increase of $857

    The new numbers show our above-average income baby boomer getting socked with increased taxes at a rate nearly five times the average.

    ** Heritage Foundation analysts performed calculations using a database supplied by the Internal Revenue Service (IRS). This database details 2008 income tax statistics according to income classification and ZIP code. Heritage used estimates of federal tax changes for various income levels to guide the estimate of tax changes for similar incomes at the Zip code level. The statistics were summed up to create state totals. Heritage analysts linked IRS income data to population data taken from the Census Bureau’s detailed sample of the 2010 Census, using income ranges to create profiles that also included such details as race, sex, and occupation.  

    Posted in Economics [slideshow_deploy]

    2 Responses to Profiles in Tax Hikes: A Florida Nurse's Tax Changes in 2013

    1. Mary Beck says:

      While we appreciate the overall information in this article, what bearing does being a "black woman" have to do with the summation of the tax increases that are going to effect every American household that pays income tax? It doesn't matter the color of your skin, if you are a successful, hard working American (which is maybe what you should have said instead), your taxes are going to increase thanks to Barack Obama. . .your descriptive comment puts you on the same level as the "lame stream media". . .please don't lower yourselves to their level and inadvertently demean your credibility–thanks for your consideration of our comments.

    2. Do ex-convicts like me and Rush Limbaugh get to be "real Americans?" Do real American have to lie like Romney and Republicans to be "real Americans?" Do you have to sing god bless America to be a "real American?" Do you have to call yourself a Patriot to be a "real American?"

      How much money do you have to have to be a "real American?" Can you get food stamps and be a "real American?" If you had over plan on having an abortion are you a "real American?" Do you have to wear an American flag pin on your lapel to be a "real American?" Can you be gay and be a "real American?"

      Can people who kidnap, enslave, rape, brand, maim, torture, murder and sell their own kids borne by the women they raped (like the Founding Fathers) be "real Americans?" Do tell, Americans want to know if this story is for them!

    Comments are subject to approval and moderation. We remind everyone that The Heritage Foundation promotes a civil society where ideas and debate flourish. Please be respectful of each other and the subjects of any criticism. While we may not always agree on policy, we should all agree that being appropriately informed is everyone's intention visiting this site. Profanity, lewdness, personal attacks, and other forms of incivility will not be tolerated. Please keep your thoughts brief and avoid ALL CAPS. While we respect your first amendment rights, we are obligated to our readers to maintain these standards. Thanks for joining the conversation.

    Big Government Is NOT the Answer

    Your tax dollars are being spent on programs that we really don't need.

    I Agree I Disagree ×

    Get Heritage In Your Inbox — FREE!

    Heritage Foundation e-mails keep you updated on the ongoing policy battles in Washington and around the country.

    ×