Tax Rate Hike Could Limit Itemized Deductions

Posted on: 4:28 pm, December 10, 2012, by

taxes

(Washington, D.C.) A potential tax rate hike for the wealthy isn’t the only reason America’s top wage earners could be paying more in taxes next year.

A new CNN money analysis shows a limit on itemized deductions would overwhelmingly affect the wealthy.

The analysis shows their tax burdens would go up by an average of $14,000 each year.

The reason is nearly 97% of taxpayers who earn $250,000 dollars or more each year itemize their taxes.

The most popular deduction among wealthier americans was for state and local income taxes.