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

REUTERS SHOWCASE

RBI Policy Review

RBI Policy Review

RBI keeps rates on hold, warns on inflation  Full Article 

Monsoon Season

Monsoon Season

India's 2014 monsoon ends with double-digit rain deficit .  Full Article 

Cleanliness Drive

Cleanliness Drive

Modi orders officials to clean loos on Gandhi's birthday.  Full Article 

Bid to Boost Trading

Bid to Boost Trading

RBI takes small steps to deepen markets.  Full Article 

Car Recall

Car Recall

Maruti Suzuki says to recall 69,555 cars.  Full Article 

China Factory Data

China Factory Data

China final HSBC PMI steady in September on stronger global demand but risks remain  Full Article 

Oil Demand

Oil Demand

India's thirst for oil grows even as China cuts back  Video 

EBay Divests PayPal

EBay Divests PayPal

EBay to spinoff PayPal in 2015  Full Article 

New 'Windows'

New 'Windows'

Microsoft names next operating system 'Windows 10'.  Full Article 

Reuters India Mobile

Reuters India Mobile

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