The deficit-reduction bill awaiting President Bush's signature will cost the average family of four $321 a year, with additional taxes spread close to evenly among the states, a new analysis shows.
The average increase will range from $151 per family in West Virginia to $578 in Connecticut, according to computations by Citizens for Tax Justice, a labor-financed research group. Utah's average was put at $207.The changes will take an average 0.6 percent of family income on a national basis, the report said. The bite on family income will be within one-tenth of a percentage point of the national average in every state except Connecticut (0.8 percent) and West Virginia (0.4 percent).
"Generally, states with the highest incomes will face slightly higher-than-average tax hikes as a share of income, while those with the lowest average incomes will pay the least in additional taxes," the report said.
"This reflects the fact that, overall, the tax hikes are somewhat progressive," meaning they fall most heavily on those most able to pay, the organization said.
On a national basis, the median tax increase will be $183, meaning that half the four-member families will see tax increases of less than $183 and half will see increases of more.
Meanwhile, an organization representing state lawmakers said the deficit-reduction plan will cost the states $16.9 billion over the next five years.
"Once again, congressional and administration budget negotiators have taken the easy way out by exporting difficult decisions to the states," the National Conference of State Legislatures said in a statement.
The biggest portion of the $16.9 billion - $10.1 billion - will come from provisions mandating Social Security coverage for all state and local government employees and raising the amount of wages that are subject to the Medicare tax.