Fw: The Senate Deal, Here's the Full Details
- Sent from my BlackBerry® on the MetroPCS NetworkFrom: "Newsmax.com" <newsmax@...>Date: Tue, 01 Jan 2013 18:17:49 GMTTo: orvex_usa@...<orvex_usa@...>ReplyTo: newsmax@...Subject: The Senate Deal, Here's the Full Details
Breaking from Newsmax.com
Senate Deal Keeps Most Tax Cuts
The White House and Mitch McConnell have reached a tentative deal early New Year's Day.
The measure would raise taxes by about $600 billion over 10 years and delay for two months across-the-board spending cuts otherwise set to begin slashing the budgets of the Pentagon and numerous domestic agencies.
- Income tax rates: Extends tax cuts on incomes up to $400,000 for individuals, $450,000 for couples. Earnings above those amounts would be taxed at a rate of 39.6%, up from the current 35%. Extends Clinton-era caps on itemized deductions and the phase-out of the personal exemption for individuals making more than $250,000 and couples earning more than $300,000.
- Estate tax: Estates would be taxed at a top rate of 40%, with the first $5 million in value exempted for individual estates and $10 million for family estates. In 2012, such estates were subject to a top rate of 35%.
- Capital gains, dividends: Taxes on capital gains and dividend income exceeding $400,000 for individuals and $450,000 for families would increase from 15% to 20%.
- Alternative minimum tax: Permanently addresses the alternative minimum tax and indexes it for inflation to prevent nearly 30 million middle- and upper-middle income taxpayers from being hit with higher tax bills averaging almost $3,000.
- Other tax changes: Extends for five years Obama-sought expansions of the child tax credit, earned income tax credit, and an up to $2,500 tax credit for college tuition.
- Unemployment benefits: Extends jobless benefits for the long-term unemployed for one year.
- Cuts in Medicare reimbursements to doctors: Blocks a 27% cut in Medicare payments to doctors for one year. The cut is the product of an obsolete 1997 budget formula.
- Social Security payroll tax cut: Allows a 2-percentage point cut in the payroll tax first enacted two years ago to lapse, which restores the payroll tax to 6.2%.
- Across-the-board cuts: Delays for two months $109 billion worth of across-the-board spending cuts set to start striking the Pentagon and domestic agencies this week. Cost of $24 billion is divided between spending cuts and new revenues from rules changes on converting traditional individual retirement accounts into Roth IRAs.
© 2012 The Associated Press. All rights reserved.
URGENT: ObamaCare's massive tax increases have automatically begun, starting the real "fiscal cliff" — make sure you are prepared! Go Here Now
This email is never sent unsolicited. You have received this Newsmax email because you subscribed to it or someone forwarded it to you. To opt out, see the links below.
TO ADVERTISE For information on advertising, please contact Newsmax Advertising Sales via email. TO SUBSCRIBE If this email has been forwarded to you and you would like to sign up, please click here.
Remove your email address from our list or modify your profile. We respect your right to privacy. View our policy.
This email was sent by:
1501 Northpoint Parkway, Suite 104
West Palm Beach, FL 33407 USA