At the end of this year, a number of tax relief measures are scheduled to expire. As a result, American families and businesses will face the largest tax increase in our nation’s history if Congress fails to extend this vital tax relief. A new study from the nonpartisan Tax Foundation offers more insight into how this looming tax increase will affect taxpayers across the country. In our Northern California Congressional District, the average family’s annual federal income tax bill will more than double, from $1,192 to $2,494.

Among the specific tax increases that are set to go into effect on January 1, 2011, are higher marginal income tax rates for most workers; a return of the infamous “marriage penalty,” which forces married couples to pay higher taxes than they would if they were unmarried; and a 50% cut in the child tax credit, from $1000 to $500 per child. In addition, taxes on investment income will rise from 15% to 20% (for capital gains) and as high as 39.6% (for dividends), resulting in a much higher tax burden for many senior citizens. Small businesses will be hit with a variety of tax increases, and the “death tax” will return at a top rate of 55%, forcing the sale of many family farms and businesses.

Tax increases of this magnitude would be damaging at any time, but they would be truly catastrophic given the current weak state of our economy. With millions of Americans struggling to find work and make ends meet, it would be unacceptable for Congress to force North State families to pay an average of $1,300 more per year to the federal government. Instead of asking taxpayers to hand over even more of their hard-earned money, it’s time for Congress to cut wasteful spending and force the government to start living within its means. As your representative, I will continue working to protect Northern California workers, families, and small businesses from these devastating tax increases.