Tax and spending cuts, set to expire at the end of the year, would cost 90 percent of American households an average of $3,500 in 2013 if Congress does not approve an extension, according to a report released Monday from the Tax Policy Center. Though the Congressional Budget Office has warned that a return to higher tax rates could push unemployment to 9 percent (from 8.1 percent) and hurt the still-fragile economy, it seems unlikely that a full extension will be passed, according to a New York Times article that described dwindling enthusiasm among Democrats for the extension. Though the hike would hit about 90 percent of American households, it would also generate $500 billion in revenue, or enough to pay for most of the Medicare program for an entire year, according to NBC News.
