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'Taxmageddon' on the horizon?

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    Analysts warn about future tax hikes

  • Duration 2:53
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Good evening I'm Bret -- today is tax day when your income tax returns and payments are due.

If you're one of the procrastinating Americans who has waited until the final hours to file you may think things can't get much worse toward more confusing.

But chief national correspondent Jim Angle tells us wait until you see what could happen next year.

While many Americans are scrambling to get this year's taxes -- analysts are warning about a bigger tax day what some called tax -- didn't.

As -- Armageddon to characterize its effect on the US economy.

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

That hits the economy on January 1 2013 almost the entire tax code has been put on -- the year to year lease and in some cases a month among police.

At the end of the year some 500 billion in tax breaks expire all at once hitting American households with an average tax increase of 3800.

Dollars.

If congress doesn't -- The potential tax increases include 165.

Billion from the expiration of the extended bush tax cuts.

Pushing Texas from a bottom right of Canada top way to 35 to a bottom right of fifteen and a top way to 39 point six.

A cut in the child tax credit for 1000 dollars per child to 500.

Return of the marriage panel date the tax on dividends would -- from fifteen to as -- -- 39 point 6%.

And the end of the 124 billion payroll tax cut and an end to a temporary fix to the Alternative Minimum Tax.

Originally aimed at millionaires -- which could hit 34 million taxpayers next year.

The expiring cuts would get all income groups but those at low and middle -- -- the hard news.

-- me get a false 70%.

Are no loan -- families that's because 60% of the bush task cuts.

War for -- low income taxpayers and that could have serious economic effects including a drop in disposable income.

An economy that's about one to two percentage points smaller than it otherwise would have been.

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

With all that -- in the economy wouldn't congress act ordinarily yes but this is a presidential election year.

It's my guess that nothing will happen on any of these issues until after the election and here we have a case in which.

Which many in congress will be either retiring or -- elected and maybe even a president.

How do you fix the tax system -- those that kind of uncertainty.

That's why one congressional source says the chances of a lame duck session are 100%.

All this raises the stakes for the economy.

Because he called -- congress acts businesses can't know what they're tax rates are going to be making it hard to hire more workers or plan for the future.

Leading -- taxpayers and the economy.

Awash in uncertainty.

-- something we're watching closely Jim.

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