Study: Without Bush Tax Cuts, Tri-State Area Residents To Fork Over Billions
ENGLEWOOD, N.J. (CBSNewYork) -- Gridlock in Washington means the Bush tax cuts could expire at the end of the year. A new study says that would mean Tri-State Area taxpayers would pay billions more to the Internal Revenue Service.
The economy gives diners plenty to chew over at It's Greek To Me restaurant.
"I feel like the middle class is really suffering," one patron told CBS 2's Tony Aiello on Thursday.
President Barack Obama now wants to keep Bush tax cuts for the middle class, but when it comes to families making more than $250,000 a year he has others ideas.
"We do not need more tax cuts for folks who are already doing really well," the president said.
In our high-wage, high-cost-of-living region, a quarter million strikes many as still middle class.
"If you're going to increase and want more taxes, go for the people making much more, the million dollars or more," one person said.
The impact will be felt in Englewood and other local economies if Washington can't decide to keep all of the Bush tax cuts, or just most of them. The worst case scenario would come about if there's no agreement and all the tax cuts expire.
A new "Tax Foundation" analysis shows that if the tax cuts expire at the end of the year Connecticut taxpayers will send $10 billion or more to Uncle Sam next year. New Jerseyans will send an extra $21.5 billion to the IRS. And New Yorkers will see their collective tax bill jump more than $50 billion.
"Most economists, including those at the Federal Reserve, predict that in the absence of some sort of tax relief, the scheduled tax increases at the end of this year will lead to a severe recession," said The Tax Foundation's Will McBride.
"People I think want to keep their money. They want to have control over their future, and fortune," restaurant owner Yanni Papaioannou said.
Both of which right now are in the hands of a gridlocked congress.
The president said he will veto any deal that does not raise taxes on "the rich" -- by his definition, families clearing more than $250,000 per year.
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