What The New Fiscal Cliff Agreement Means For Your Taxes - KSWO 7News | Breaking News, Weather and Sports

What The New Fiscal Cliff Agreement Means For Your Taxes

LAWTON, Okla_We avoided falling off the so called Fiscal Cliff, and all of the worst-case scenarios that were talked about for months are history. However, even with all of the news coverage and headlines of the House and the Senate coming to an agreement, many have been left to wonder what exactly came out of the deal.

Chris Meyers, a tax attorney for over 40 years, said the Fiscal Cliff agreement will not mean much for people in Southwest Oklahoma.

"Persons who are not in the ultra-high income area will not notice any effect. Your taxes will not be increased, " said Meyers.

Under the new Fiscal Cliff agreement, the centerpiece of the deal is an income tax increase for individuals who make more than $400,000 a year or couples who make more than $450,000 a year, from 35% to 39.6%.

"Probably no more than 100 families in this area would have incomes in excess of $450,000 per year on their joint return or $400,000 on an individual return, " said Meyers.

The new tax increases have been estimated to raise roughly 600 billion dollars over the next 10 years, which sounds like a lot, but compared to our over 16 trillion dollars of debt, it is just a drop in the bucket.

"It certainly will not solve our problems. It's probably a step in the right direction, but certainly not a cure-all, " Meyers explained.

Aside from the constant news chatter, most will not feel the sting of the Fiscal Cliff, but for those who will be affected, there is a silver lining.

"If you're one of those persons who wakes up and your taxes are going to be a lot higher, then you should be happy because you'll be making more than $450,000, " Meyers said.

There is one bit of bad news. Despite the last minute Fiscal Cliff agreement, 77% of Americans are likely to see smaller paychecks due to a separate battle over payroll tax rates that expired on Monday. Most people will be paying at least 2% more in payroll taxes a year, meaning Americans earning $30,000 a year will take home around $50 less per month.

In addition to the tax increases, the new agreement has extended the Farm Bill and unemployment benefits each for an additional year. But Congress' work is far from over. In two months, there will be the threat of massive federal spending cuts coming into effect, and of course, they still have that 16.4 trillion dollar national debt to sort out.

  • Local NewsNewsMore>>

  • Trump talks new gun measures, gun owners talk 'betrayal'

    Trump talks new gun measures, gun owners talk 'betrayal'

    Saturday, February 24 2018 1:15 AM EST2018-02-24 06:15:31 GMT
    Saturday, February 24 2018 8:36 AM EST2018-02-24 13:36:44 GMT
    (AP Photo/Evan Vucci). In this Feb. 22, 2018, photo, President Donald Trump speaks during a meeting with state and local officials to discuss school safety in the Roosevelt Room of the White House in Washington. Trump could face a backlash from gun rig...(AP Photo/Evan Vucci). In this Feb. 22, 2018, photo, President Donald Trump speaks during a meeting with state and local officials to discuss school safety in the Roosevelt Room of the White House in Washington. Trump could face a backlash from gun rig...
    President Donald Trump could face a backlash from gun rights advocates by voicing support for gun control measures.
    President Donald Trump could face a backlash from gun rights advocates by voicing support for gun control measures.
  • Latest Mueller indictment spells trouble for bankers, too

    Latest Mueller indictment spells trouble for bankers, too

    Saturday, February 24 2018 1:05 AM EST2018-02-24 06:05:06 GMT
    Saturday, February 24 2018 8:36 AM EST2018-02-24 13:36:34 GMT
    (AP Photo/Susan Walsh, File). FILE - In this Dec. 11, 2017, file photo, former Trump campaign chairman Paul Manafort arrives at federal court in Washington. Recently unsealed criminal charges against President Donald Trump’s ex-campaign chairman could ...(AP Photo/Susan Walsh, File). FILE - In this Dec. 11, 2017, file photo, former Trump campaign chairman Paul Manafort arrives at federal court in Washington. Recently unsealed criminal charges against President Donald Trump’s ex-campaign chairman could ...
    Recently filed federal charges against President Donald Trump's former campaign chairman could also pose legal and regulatory risks for the banks that loaned him millions.
    Recently filed federal charges against President Donald Trump's former campaign chairman could also pose legal and regulatory risks for the banks that loaned him millions.
  • American men win Olympic curling gold, beat Sweden 10-7

    American men win Olympic curling gold, beat Sweden 10-7

    Saturday, February 24 2018 6:55 AM EST2018-02-24 11:55:15 GMT
    Saturday, February 24 2018 8:36 AM EST2018-02-24 13:36:08 GMT
    (AP Photo/Natacha Pisarenko). United States's skip John Shuster reacts during the men's final curling match against Sweden at the 2018 Winter Olympics in Gangneung, South Korea, Saturday, Feb. 24, 2018.(AP Photo/Natacha Pisarenko). United States's skip John Shuster reacts during the men's final curling match against Sweden at the 2018 Winter Olympics in Gangneung, South Korea, Saturday, Feb. 24, 2018.

    The underdog U.S. men's curling team skipped by John Shuster won the Olympic gold medal with a 10-7 victory over Sweden.

    The underdog U.S. men's curling team skipped by John Shuster won the Olympic gold medal with a 10-7 victory over Sweden.

Powered by Frankly