Burlington, Vt. - On Monday, President Barack Obama announced he wants to maintain taxes for some Americans and raise them for others.
At a news conference, Mr. Obama presented a plan to extend the Bush-era tax cuts for families making under $250,000. The President does not want to extend the cuts for anyone making over that income level.
So, what does this mean for our area? The 2010 Census reports that the median income for a family of four in the Green Mountain State is almost $75,000. In New York, it is roughly $82,000.
When we plugged these incomes into a policy calculator by the Tax Foundation, we found that Mr. Obama's tax plan would save the Vermont family roughly $3,700. And it would save the New York family roughly $3,800.
For families making more than $250,000, prepare for higher taxes. The calculator says that could mean an increase of more than $6,000 for a family of four. According to Vermont tax data, that would only affect about 2% of the population.
"It would be a little bit constraining on the economy," Saint Michael's College economist John Carvellas said.
Carvellas argues, whether it is the President's plan or a full extension of tax cuts, something needs to be passed before January when the cuts are set to expire.
"We are on the verge of slipping back into a recession. And this would be enough to really I think push us off the cliff again without ever really recovering from the last one," Carvellas said.
It is up in the air whether the President's plan will make it through Congress. Or, that anything will happen before the Presidential election in November.
