On March 1, the first installment of the fiscal cliff will be passed.
If the bill passes, a two-year tax cut for the wealthiest Americans will expire, cutting the annual tax cut to around $3,400 for households making $250,000 or less.
The tax cut will remain in effect through 2025.
That means that the first $500,000 households will see a $3.4 billion tax increase in 2025.
The second $500 (or more) will see their tax bill fall by $3 billion in 2025, and the third $500 will see it fall by about $3 million in 2025 and thereafter.
That leaves a total of $6.5 billion in taxes that will be lost for households earning $1 million or less in 2025 or later.
A second round of the tax cut takes effect on July 1, 2019, and ends in 2024.
This round will be phased in over two years, so the cuts in 2019 will be more gradual and the first two years will be much more generous.
The last round of tax cuts will expire on June 1, 2023, and that means the first four years will pay for the first of the two-years cuts.
This would mean that households earning less than $50,000 will see an additional $4,000 in taxes in 2025 (plus $1,000 per child).
Households earning $100,000-$150,000 would see an increase of about $1.5 million in taxes.
For families earning more than $250 million, their tax cut is even bigger.
Their tax bill would be $6,200 in 2025; $10,000 for households with incomes between $250 and $1 billion; and $16,000 ($1,500 if married filing jointly).
For households earning more, it’s a $1-million tax hike in 2025 with a $4-million hike in 2019.
For households earning between $1 and $3 trillion, the tax increase is $12,000.
For those earning more and earning less, it would be an additional increase of $1 trillion.
If you’re an average household, that means a $6-billion tax increase for the rest of the year.
That’s more than the $5.7-trillion tax increase that the wealthiest 20% of Americans saw in 2016.
It also means that households making between $50 and $75,000 are likely to see a significant tax hike, too.
This is a much more severe cut than the one seen in 2016 when the wealthiest 1% of households saw a $9-billion boost in taxes, or $13,000 more than in 2012 when the richest 1% saw a nearly $25-billion increase in taxes due to the fiscal crisis.
For those earning between 50 and $100 million, they are expected to see an $11-billion hike in taxes over the next decade, which is more than twice as much as the tax cuts they saw in 2010.