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Americans Face Huge Tax Hikes Next Year

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    Will Congress take action?

  • Duration 2:27
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Doctor taxes now and forget about billionaires like Warren Buffett every day Americans.

Are facing huge tax hikes the average family could -- an extra 3800 dollars.

Unless congress takes action before next January chief national correspondent Jim Angle is live in DC with more -- Hello Rick well today is tax day of course but -- -- looking toward a bigger tax today what analysts call tax -- hadn't as in Armageddon.

To characterize its effect on the US economy.

And.

Text again -- a 500 billion dollar one year tax hike.

That hits the economy on January 1 when he thirteen almost the entire tax code has been put on year to year lease and in some cases a month among police.

Which is no way to run a tax system and no way to run a government.

Now tax Armageddon because a large number of tax policies expire together at the end of this year.

All of the extended bush tax cuts including a lower rates for all and things such as the expanded child tax credit also the payroll tax cut and a host of other cuts meant to stimulate the economy taking all of them away at once will increase taxes by 500.

Billion dollars.

For one -- -- which could cripple an already weak economy.

Unemployment is gonna go up.

You're gonna have probably -- an economy that's at about one to two percentage points smaller than it otherwise would have been.

In unemployment that's a full percentage point higher than it otherwise would have been because of these tax hikes.

Now the increases -- hit every taxpayer in the country with some 70% of the burden falling on those who have low and middle and come of course congress would like to avoid all that but with the uncertainties of the fall elections for both congress and the presidency.

Action may be -- It's my guess that nothing will happen on any of these issues until after the election.

Which means that we have a small virtually one month window.

After the election to deal with all of these major issues before the entire tax system collapses.

And all this raises the stakes -- the economy because until congress acts businesses can't know what they're tax rates are.

Are going to be that makes it hard to hire workers or plan for the future.

Leaving the economy and taxpayers in limbo -- adding even more uncertain date to an already weak economy.

Rick -- and a lot for us in the nation's capital Jim thanks.

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