Deficit Bill to Cost Typical Family of Four $321 a Year, Analysis Finds
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WASHINGTON — The deficit-reduction bill awaiting President Bush’s signature will cost the average family of four $321 a year, with additional taxes spread nearly evenly among the states, a new analysis shows.
The average increase will range from $151 per family in West Virginia to $578 in Connecticut, according to computations by Citizens for Tax Justice, a labor-financed research group.
The changes will take an average 0.6% of family income on a national basis, the report said.
The bite on family income will be within one-tenth of a percentage point of the national average in every state except Connecticut (0.8%) and West Virginia (0.4%).
“Generally, states with the highest incomes will face slightly higher-than-average . . . tax hikes as a share of income, while those with the lowest average incomes will pay the least in additional taxes,” the report said.
On a national basis, the median tax increase will be $183, meaning that half the four-member families will see tax increases of less than $183 and half will see increases of more.
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