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

  • Most Popular
  • Most Shared

Trade Deal

REUTERS SHOWCASE

Bullish on Equities

Bullish on Equities

Bullish on Indian equities, but gains seen 'less sharp'- Goldman Sachs  Full Article 

Streamlining Operations

Jet Streamlines

Jet Airways chairman says looking to restructure debts, talking to bankers  Full Article 

Political Economy

Political Economy

Analysis - Watch what markets don't do as world politics turns nasty   Full Article 

Photo

Honda's India Thrust

Honda's India unit to account for 25 pct of Asia Pacific sales by March 2017 - exec   Full Article 

Short of Expectations

Short of Expectations

Apple revenue lags Street's view despite strong China growth  Full Article 

 Boosting Output

Boosting Output

NMDC plans to boost iron ore output by two-thirds  Full Article 

Apple Results

Apple Results

Apple margin concerns fade, focus shifts to iPhone launch  Full Article 

Photo

Food Scandal

Five held in China food scandal probe, including head of Shanghai Husi Food   Full Article 

Reuters India Mobile

Reuters India Mobile

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