Happy happy joy joy - the Fiscal Cliff
From Paul L. Caron writing at
TaxProf Blog:
CBO on Fiscal Cliff Deal: $1 in Spending Cuts ($15 Billion) for Every $41 in Tax Increases ($620 Billion)
The Senate early this morning passed H.R. 8 by a vote of 89-8 to avert the fiscal cliff. Highlights of the bill include:•Raise the marginal tax rate to 39.6% on income over $450,000 (joint) and $400,000 (single).
•Raise the tax rate on dividends and long term capital gains to 20% on taxpayers with income over $450,000 (joint) and $400,000 (single). The top rate would remain 15% for taxpayers with lower incomes.
•Estate and gift tax: $5 million exemption (inflation-adjusted) and 40% rate.
•Permanent and retroactive patch for the AMT.
•Return of the exemption and itemized deduction phase-outs on taxpayers with income over $300,000 (joint) and $250,000 (single).
•One-year extension of 50% bonus depreciation.
•Extension of various tax extenders.
The Joint Committee on Taxation's revenue estimate scores the bill as a $3.9 billion tax cut compared to existing (January 1, 2013) law.
The White House has released this fact sheet and statement from President Obama.
Of course it was a tax cut -- H.R. 8 was voted in after midnight so that the Bush tax rates had expired and we were using the Clinton tax rates. And all this increased revenue will run the government for about two weeks...
Posted by DaveH at January 1, 2013 10:04 AM