Tax increases coming for middle class

It’s probably fair to say this won’t come as much of a surprise to many who regularly read this blog:

The Obama administration’s plan to cut more than $1 trillion from the deficit over the next decade relies heavily on so-called backdoor tax increases that will result in a bigger tax bill for middle-class families.

In addition to millions of middle-class households who may face higher taxes because of Congress’ inability to extend tax breaks that expired on January 1st of this year, students may also find themselves with a higher tax burden.  According to the Reuters news story, additional tax incentives that are set to expire include:

Tax deduction for up to $4,000 of college tuition and expenses

The first $2,400 of unemployment benefits are taxable, in 2009 that amount was tax-free

Read the rest of the story here.  [UPDATE: Reuters pulled the story, but it’s still available at the Canadian Yahoo! site, so updated the link to reflect the change. No word from Reuters as to why they pulled it.]

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