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Calculate How Your Taxes Will Change in 2011

On January 1, 2011, the largest tax hike in American history may arrive. Unless Congress takes action, Bush-era tax cuts that were enacted in 2001 and 2003 will expire at the end of 2010. According to Cato Institute scholar Chris Edwards:

 The Bush tax cuts substantially reduced tax rates for people in every income group. Indeed, those at the bottom had the largest relative reductions in their tax rates.

In fact, these tax cuts have saved a middle-class family of four about $2,200 annually. Since the fate of the Bush-era tax cuts is still uncertain, countless Americans are wondering how the potential tax increases will affect them. Luckily, the Tax Foundation has released a Bush-era tax cuts calculator that allows individuals to find out how their tax liabilities will change in 2011 under three different scenarios. After filling in information such as salary and number of dependents, the user can see their 2011 income tax if all the Bush tax cuts expire, if all of the Bush tax cuts are extended or if Congress passes the tax laws in Obama’s budget which lets specific tax cuts expire.

Tax calculator