We could see 2013 tax increases if Congress doesn't act

TERRE HAUTE, Ind. (WTHI) - It's one of the biggest stories of the 2012 election that you may not have heard yet. Federal tax increases across the board for American households. Lawmakers still have time to change that before it affects us locally.

Taxes are just one of those sure things in American life. When spring rolls around it's time to turn in your information.

But with 2013 around the corner, there is a set of tax laws that could affect your income in a big way unless Congress does something about it.

Here's what happened, in 2001 the United States government issued a set of tax code that lowered the federal income tax percentage for most tax groups.

For the last decade those have been extended several times. But as they prepare to expire the result could be bad for Hoosiers.

According to the independent research group the Tax Policy Center, across the board families are facing a 3,400 dollar average tax increase. In addition, the top 1% of households would lose an additional 10.5% of their income to taxes.

So what will Washington do?

Well in this election year we wanted to see what your potential representatives plan to do.

So we got in touch with current Republican congressman Larry Bucshon and his general election opponent former state representative Democrat Dave Crooks.

Their feelings on the taxes are quite similar.

"The consequences of allowing these taxes to expire would and for the taxes to go up on everyone would be really detrimental to the middle class to businesses and to the country,” Bucshon said.

"I wouldn't be against an idea of a one year extension of the Bush tax cuts if lawmakers would get serious about what we have to do for the long haul,” Crooks said.

But they do differ on one point.

"My position is the current tax rates should be extended for all citizens,” Bucshon said

"Now I’m not opposed to looking at raising the tax rates back to the Clinton-era on those making over 250,000 dollars,” Crooks explained.

Crooks said that the raise on the top tax group could help the deficit. While Bucshon feels any increase on any tax group would not do well in a recession.