FACTBOX - Key points in bill passed by Congress to avert U.S. 'fiscal cliff'

Wed Jan 2, 2013 10:32am 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

REUTERS - The U.S. 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 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 "doc fix."

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

FILED UNDER:

Reuters Showcase

Land Ordinance

Land Ordinance

Modi says willing to make changes in land decree  Full Article 

Sahara Woes

Sahara Woes

SEBI cancels Sahara's portfolio management licence  Full Article 

Gold Demand

Gold Demand

India gold demand muted, eyes cut in import duty  Full Article 

Coffee's Hot

Coffee's Hot

IPO could value Cafe Coffee Day at $1 billion  Full Article 

Sahara Salaries

Sahara Salaries

Some staff say Sahara has not paid salaries for months   Full Article 

DLF Fined

DLF Fined

DLF says reviewing $8.4 million SEBI penalty  Full Article 

GM Corn

GM Corn

Monsanto says GM corn trial in final stage in India  Full Article 

Rail Budget

Rail Budget

Breakingviews - India goes back to future with $137 bln rail push  Full Article | Full Coverage 

Clean Energy

Clean Energy

India says clean energy a $160 billion opportunity over five years  Full Article 

Reuters India Mobile

Reuters India Mobile

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