by Nick Kasprak
December 11, 2012
The twenty hardest hit metropolitan areas are a mixture of very low-income and high-income areas of the country; the list includes both McAllen, Texas (with a median four-person household income of $36,104) as well as the Washington, DC metro area (with a median four-person household income of $115,519.) Low income families are affected by a number of targeted refundable tax credits that are set to be dramatically reduced should the Bush tax cuts expire, primarily the Earned Income Tax Credit (where a significant marriage penalty is set to return) and the Child Tax Credit (which will be cut in half and made mostly nonrefundable, meaning the credit value cannot exceed income tax liability.) Higher income families should pay attention to what happens with the Alternative Minimum Tax.