FACTBOX - Key points in tentative U.S. deal to avert 'fiscal cliff'

Tue Jan 1, 2013 4:10am IST

United States money printing plates are seen at the Museum of American Finance in New York October 15, 2010. REUTERS/Shannon Stapleton/Files

United States money printing plates are seen at the Museum of American Finance in New York October 15, 2010.

Credit: Reuters/Shannon Stapleton/Files

Related Topics

Priyanka Gandhi Vadra, daughter of Congress party chief Sonia Gandhi, adjusts her flower garlands as she campaigns for her mother during an election meeting at Rae Bareli in Uttar Pradesh April 22, 2014. REUTERS/Pawan Kumar

Election 2014

More than 814 million people — a number larger than the population of Europe — are eligible to vote in the world’s biggest democratic exercise.  Full Coverage 

REUTERS - Hours before a deadline for $600 billion in automatic tax increases and spending cuts, U.S. Senate leaders on Monday were working out the details of a deal to avert the so-called "fiscal cliff."

President Barack Obama cautioned there were still "issues left to resolve" in the tentative deal, which still needs approval from the Senate as well as the Republican-led House of Representatives.

Here are details of the deal as it stood at midday on Monday, according to a source familiar with the talks:

* Postpones the $1.2 trillion in automatic spending cuts over 10 years, known as the "sequester." But there was not yet agreement about how long Congress would have to negotiate spending cuts and revenue increases to replace the sequester.

* Raises $600 billion in revenue over 10 years through a series of tax increases on wealthier Americans.

* Permanently extends tax cuts made in 2001 by Republican former 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 percent, up from the current top rate of 35 percent.

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

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

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

* 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 percent bonus depreciation for one year.

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

(Reporting by Jeff Mason, Mark Felsenthal, Roberta Rampton, Kim Dixon; Editing by Mohammad Zargham)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

RAINFALL THIS YEAR

REUTERS SHOWCASE

Election 2014

Election 2014

Thousands mob Modi as election race starts in Varanasi.  Full Article 

Monsoon Forecast

Monsoon Forecast

Met office rules out surplus monsoon in 2014.  Full Article 

Facebook's Performance

Facebook's Performance

Facebook Q1 revenue grows 72 percent on rising mobile ads.  Full Article 

Earnings Season

Earnings Season

Bharti Infratel Q4 net profit jumps 64 percent.  Full Article 

Solar Dispute

Solar Dispute

Green groups urge U.S. to drop solar trade case against India.  Full Article 

Oil Imports

Oil Imports

India to make May-July oil payments to Iran - sources.  Full Article 

Rice Exports

Rice Exports

India may cede top rice exporter spot under Southeast Asian price onslaught.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage