If Congress failed to come to an agreement on the middle class tax cut extensions, it could trigger jobs losses and cause the Massachusetts economy to shrink, according to a new White House analysis. A sharp rise in middle class taxes – something both parties are hoping to avert -- would cause residents to spend nearly $4.6 billion less next year in Massachusetts, resulting in a 1.2 percentage point drop in the state’s Gross Domestic Product. A typical Massachusetts family of four, earning $86,000, would see its income taxes rise by $2,200, according to the report.
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