Key points in bill passed by Congress to avert US fiscal cliff
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."Updated: Jan 02, 2013 15:25 IST
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:
* 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."