WASHINGTON (AP) — A typical middle-income family making $40,000 to $64,000 a year could see its taxes go up by $2,000 next year if lawmakers fail to renew a lengthy roster of tax cuts set to expire at the end of the year, according to a new report Monday

Taxpayers across the income spectrum would be hit with large tax hikes, the Tax Policy Center said in its study, with households in the top 1 percent income range seeing an average tax increase of more than $120,000, while a family making between $110,000 to $140,000 could see a tax hike in the $6,000 range.

Taxpayers across the income spectrum will get slammed with increases totaling more than $500 billion — a more than 20 percent increase — with nine out of 10 households being affected by the expiration of tax cuts enacted under both President Barack Obama and his predecessor, George W. Bush.

The expiring provisions include Bush-era cuts on wage and investment income and cuts for married couples and families with children, among others. Also expiring is a 2 percentage point temporary payroll tax cut championed by Obama.

The looming expiration of the large roster of tax cuts is one of the issues confronting voters in November, with the chief difference between Obama and GOP candidate Mitt Romney being the tax treatment of wealthier earners. Obama is calling for permitting rates on individual income exceeding $200,000 and family incoming over $250,000 to go back to Clinton-era rates of as much as 39.6 percent.

Both candidates call for rewriting the tax code next year, but any such effort promises to be difficult and could take considerable time.

Monday's study, by the independent Tax Policy Center, deals with the immediate increases set to slap taxpayers in January under the existing framework of the tax code.

Few are talking of renewing Obama's payroll tax cut, even though that would mean a healthy tax increase for many working people. Working families with modest incomes would be hit hard as the child tax credit would shrink from a maximum of $1,000 per child to $500.

As a result, a married couple earning $50,000 with three dependent children that currently receives an almost $1,500 income tax refund largely due to the child tax credit would see their fortunes reversed by more than $3,000 next year and pay more than $1,500 in income taxes while seeing their payroll taxes go up by $1,000 if the full menu of tax cuts expire.

"It's just a huge, huge number," said Eric Toder, one of the authors of the study.

Economists warn that the looming tax hikes, combined with $109 billion in automatic spending cuts scheduled to take effect in January, could throw the fragile economy back into recession if Washington doesn't act. The automatic spending cuts are coming due because of the failure of last year's deficit "supercommittee" to strike a bargain. The combination of the sharp tax hikes and spending cuts has been dubbed a "fiscal cliff."

"The fiscal cliff threatens an unprecedented tax increase at year end," says the report. "Taxes would rise by more than $500 billion in 2013 — an average of almost $3,500 per household — as almost every tax cuts enacted since 2001 would expire."

Cumulatively, the country would see a 5 percentage point jump in its average tax rate, which works out to taxes on the top 1 percent jumping by more than 7 percentage points and about 4 percentage points for most people earning below $100,000 a year.

Put another way, people in the $40,000-$64,000 income range would see their average federal tax rate jump from 14 percent to 17.8 percent — or an increase in their overall federal bill of 27 percent.

All told, almost 90 percent of all households would face a tax increase, though the top 20 percent of earners would bear 60 percent of the overall cost. Across all households the tax increases would average almost $3,500.

The expiration of cuts on capital gains and stock dividends is a key reason why wealthier people would see a higher increase in their tax burdens.

Republicans controlling the House have also called for the expiration of Obama-backed tax cuts for the working poor, including expansions of the earned income and child tax credits.

But all sides are calling for the renewal of Bush-era tax rates for everyone else. Without a renewal of those rates, a married couple would pay a 28 percent rate on taxable income exceeding $72,300 instead of the 25 percent rate they now pay. And the 10 percent rate paid on the first $8,900 of income would jump to 15 percent.

The new top rate of 39.6 percent would kick in for income over $397,000. The current top rate is 35 percent rate.

The Tax Policy Center is a joint project of the Urban Institute and the Brookings Institution.

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  • 10. Oklahoma

    <strong>Median household income:</strong> $43,225 <strong>Population:</strong> 3,791,508 (23rd lowest) <strong>Unemployment rate:</strong> 6.2 percent (8th lowest) <strong>Percent below poverty line:</strong> 17.2 percent (16th highest) Oklahoma remarkably low unemployment rate of 6.2 percent for a state that is among the nation's poorest. The poverty rate of 17.2 percent has inched up each year from the 2008 rate of 15.9 percent. The low median income suggests a need for higher paying jobs as Oklahoma relies heavily on agricultural production. Also, government and military, which tend to be low-paying jobs, account for the highest percentage of jobs in the state. But Oklahoma is also a major producer of oil and gas. Growth in the energy sector, which tends to pay more, would help improve on Oklahoma's median income of $43,225. <a href="http://247wallst.com/2012/09/20/americas-poorest-states-2/#ixzz278PXWQqP" target="_hplink">Read more at 24/7 Wall St. </a>

  • 9. South Carolina

    <strong>Median household income:</strong> $42,367 <strong>Population:</strong> 4,679,230 (24th highest) <strong>Unemployment rate:</strong> 10.3 percent (8th highest) <strong>Percent below poverty line:</strong> 18.9 percent (9th highest) South Carolina has been hit harder than many states by the recent economic downturn. The state's sizable tourism industry has slowed as families cut back on vacations. The state's 10.3 percent unemployment rate in 2011 was well above the 8.9 percent national rate. South Carolina's poverty rate of 18.9 percent was the ninth highest in the U.S. and significantly higher than the national rate of 15.9 percent. Moreover, approximately 6.5 percent of families made less than $10,000 a year, the fifth highest proportion in the country. Meanwhile, only 2.9 percent of families made more than $200,000 a year, the sixth-lowest rate in the country. <a href="http://247wallst.com/2012/09/20/americas-poorest-states-2/#ixzz278PXWQqP" target="_hplink">Read more at 24/7 Wall St. </a>

  • 8. New Mexico

    <strong>Median household income:</strong> $41,963 <strong>Population:</strong> 2,082,224 (15th lowest) <strong>Unemployment rate:</strong> 7.4 percent (18th lowest) <strong>Percent below poverty line:</strong> 21.5 percent (2nd highest) Last year, 7.2 percent of families in New Mexico earned less than $10,000, a larger proportion than in any state but Mississippi and Louisiana. In addition, 21.5 percent of residents lived below the poverty line, well above the national rate of 15.9 percent. As a result of poverty and limited job benefits, many New Mexicans cannot afford health insurance. Last year, 19.8 percent of the state's residents were uninsured. This was significantly higher than the national rate of 15.1 percent even though the cost of healthcare in New Mexico was slightly below the national average. <a href="http://247wallst.com/2012/09/20/americas-poorest-states-2/#ixzz278PXWQqP" target="_hplink">Read more at 24/7 Wall St. </a>

  • 7. Louisiana

    <strong>Median household income:</strong> $41,734 <strong>Population:</strong> 4,574,836 (25th highest) <strong>Unemployment rate:</strong> 7.3 percent (16th lowest) <strong>Percent below poverty line:</strong> 20.4 percent (3rd highest) Louisiana is located at the center of the poorest region in the country -- the Deep South along the gulf coast. When Hurricane Katrina struck the region in 2005, the southern part of the state was decimated, particularly the city of New Orleans. Six years later, the city was still recovering with almost 17 percent of families earning less than $10,000 per year, more than triple the national rate of 5.1 percent. By many measures, conditions are actually getting worse in the state. As of 2011, for the first time since Katrina, more than one in five residents lived below the poverty line, only slightly better than Mississippi and New Mexico. Louisiana's median income fell by more than the country as a whole, falling more than $2,000 between 2010 and 2011. <a href="http://247wallst.com/2012/09/20/americas-poorest-states-2/#ixzz278PXWQqP" target="_hplink">Read more at 24/7 Wall St. </a>

  • 6. Tennessee

    <strong>Median household income:</strong> $41,693 <strong>Population:</strong> 6,403,353 (17th highest) <strong>Unemployment rate:</strong> 9.2 percent (16th highest) <strong>Percent below poverty line:</strong> 18.3 percent (12th highest) In Tennessee some 6.1 percent of families, or about a third of families in poverty, made less than $10,000 in 2012, a percentage point higher than the national figure. Poverty in many of Tennessee's largest cities is even worse than the state as a whole. In Memphis, the state's largest city, 27.2 percent of the population lived below the poverty line, including 13.1 percent of households earning less than $10,000 a year. In Chattanooga, 28.7 percent of the population lived below the poverty line, including 16.3 percent of households earning less than $10,000 annually. While the state's median income was lower than most, Tennessee had the second-lowest overall cost of living in and the lowest cost of living for housing among all states in 2011. <a href="http://247wallst.com/2012/09/20/americas-poorest-states-2/#ixzz278PXWQqP" target="_hplink">Read more at 24/7 Wall St. </a>

  • 5. Alabama

    <strong>Median household income:</strong> $41,415 <strong>Population:</strong> 4,802,740 (23rd highest) <strong>Unemployment rate:</strong> 9 percent (18th highest) <strong>Percent below poverty line:</strong>19 percent (7th highest) In 2011, Alabama's median income was more than $9,000 below the nation's median income, while 6.4 percent of families lived off less than $10,000 a year -- higher than in all but five states. For the second year in a row, Alabama's poverty rate was 19 percent, remaining more than three percentage points above the national rate. Despite struggling with poverty, only 14.3 percent of Alabamians did not have health insurance last year -- slightly better than the national figure of 15.1 percent. It is likely that Alabama's cheap health care-the least expensive in the country for the fourth quarter of 2011-resulted in more insured residents.According to Gallup, since August of 2011 almost 23 percent of state residents reported not having enough money to buy food at least once. <a href="http://247wallst.com/2012/09/20/americas-poorest-states-2/#ixzz278PXWQqP" target="_hplink">Read more at 24/7 Wall St. </a>

  • 4. Kentucky

    <strong>Median household income:</strong> $41,141 <strong>Population:</strong> 4,369,356 (25th lowest) <strong>Unemployment rate:</strong> 9.5 percent (13th highest) <strong>Percent below poverty line:</strong> 19.1 percent (5th highest) Kentucky's unemployment rate of 9.5 percent, while not as high as states such as South Carolina and Mississippi, was well above the national rate of 8.9 percent. The employment rate will likely stay high in the near future as mining, a major industry in Kentucky, has declined in the past year due to a drop in natural gas prices. Severe poverty plagues the state, as 6.9 percent of families earned less than $10,000 in 2011, the fourth lowest of all states. Meanwhile, a mere 3 percent of Kentucky families earned more than $200,000 a year, the seventh-lowest rate in the country. Fortunately for those with lower incomes, Kentucky has the fourth-lowest cost of living in the U.S., including the second-lowest cost of living for groceries. <a href="http://247wallst.com/2012/09/20/americas-poorest-states-2/#ixzz278PXWQqP" target="_hplink">Read more at 24/7 Wall St. </a>

  • 3. Arkansas

    <strong>Median household income:</strong> $38,758 <strong>Population:</strong> 2,937,979 (19th lowest) <strong>Unemployment rate:</strong> 8 percent (tied-25th lowest) <strong>Percent below poverty line:</strong> 19.5 percent (4th highest) While the national median household income fell to $50,502 in 2011, Arkansas was just one of three states where median income remained below $40,000 for the year. Despite an unemployment rate of 8 percent in 2011, nearly one percentage point below the national rate, the 19.5% of families lived below the poverty line, one of the nation's highest rates. Poverty was slightly less of a problem in Little Rock, the state's largest city, which had a 16.4 percent poverty rate and a median income of $40,976. Despite having the third-lowest cost of health care nationwide at the end of 2011, 17.1 percent of residents lived without health insurance last year-well above the national figure of 15.1 percent. <a href="http://247wallst.com/2012/09/20/americas-poorest-states-2/#ixzz278PXWQqP" target="_hplink">Read more at 24/7 Wall St. </a>

  • 2. West Virginia

    <strong>Median household income:</strong> $38,482 <strong>Population:</strong> 1,855,364 (14th lowest) <strong>Unemployment rate:</strong> 8 percent (tied-25th lowest) <strong>Percent below poverty line:</strong> 18.6 percent (10th highest) West Virginia's median income of $38,482 was well off the median income of $40,093 in 2007. The state's unemployment rate of 8 percent was well below the 8.9 percent nationwide. But, like Kentucky, a softening mining sector in 2012 could weaken West Virginia's economy. The proportion of West Virginia residents without health insurance grew 4.9 percent, the third-largest increase in the U.S. Fortunately for cash-strapped residents, although the state's overall cost of living is in the middle of the pack compared to all other states, the cost of groceries is the third lowest in the country. <a href="http://247wallst.com/2012/09/20/americas-poorest-states-2/#ixzz278PXWQqP" target="_hplink">Read more at 24/7 Wall St. </a>

  • 1. Mississippi

    <strong>Median household income:</strong> $36,919 <strong>Population:</strong> 2,978,512 (20th lowest) <strong>Unemployment rate:</strong> 10.7 percent (4th highest) <strong>Percent below poverty line:</strong> 22.6 percent (the highest) The median income of the poorest state in the country, Mississippi, was just slightly less than 53 percent of the median income of Maryland, the richest state. Mississippi's median income-like many states- fell each year between 2008 and 2011, dropping $2,677 during that time. Not only did Mississippi have the highest poverty rate in the country, but 7.8 percent of Mississippi families made less than $10,000 in 2011, which was also the lowest rate in the country. While unemployment declined in most states between 2010 and 2011, Mississippi's actually rose 0.2 percentage points, one of only two states to see an increase in unemployment. <a href="http://247wallst.com/2012/09/20/americas-poorest-states-2/#ixzz278PXWQqP" target="_hplink">Read more at 24/7 Wall St. </a>