Advertisement

HindustanTimes Tue,02 Sep 2014

Key points in bill passed by Congress to avert US fiscal cliff

Reuters  New Delhi, January 02, 2013
First Published: 15:24 IST(2/1/2013) | Last Updated: 15:25 IST(2/1/2013)

The US House of Representatives approved a Senate bill on Tuesday night to avert $600 billion in automatic tax increases and spending cuts known as the "fiscal cliff." Here are details:

Advertisement

* Postpones the first installment of automatic spending cuts for two months while Congress works on a plan replace them.

* Raises $620 billion in revenue over 10 years through a series of tax increases on wealthier Americans.

* Permanently extends tax cuts enacted in 2001 under former republican president George W Bush for income below $400 000 per individual  or $450 000 per family. Income above that level would be taxed at 39.6%  up from the current top rate of 35%.

* Above that income threshold  capital gains and dividends tax rates would return to 20% from 15%.

* Caps personal exemptions and itemized deductions for income above $250 000  or $300 000 per household.

* Raises estate tax rate to 40% for estates of more than $10 million per couple  up from the current level of 35%.

* Includes a permanent fix for the alternative minimum tax.

* Extends unemployment insurance benefits for one year for 2 million people.

* Extends child tax credit earned income tax credit and tuition tax credit for five years.

* Extends research and experimentation tax credit and the wind production tax credit through the end of 2013. Extends 50% bonus depreciation for one year.

* Avoids a cut in payments to doctors treating patients on Medicare - the "doc fix."


Advertisement
more from Business

RBI asks banks to set timeline to process loans

To expedite credit decisions, the Reserve Bank of India on Monday asked banks to set a timeline for disposal of loan proposals but did not ascribe a particular timeframe for the same.
markets
Advertisement
Most Popular
Advertisement
Advertisement
Copyright © 2014 HT Media Limited. All Rights Reserved