Wednesday, January 2, 2013
The House last night approved H.R. 8 by a vote of 257-167 to avert the fiscal cliff. The bill now goes to the White House for President Obama's signature. Highlights of the bill include:
- Raise the marginal tax rate to 39.6% on income over $450,000 (joint) and $400,000 (single).
- Raise the tax rate on dividends and long term capital gains to 20% on taxpayers with income over $450,000 (joint) and $400,000 (single). The top rate would remain 15% for taxpayers with lower incomes.
- Estate and gift tax: $5 million exemption (inflation-adjusted) and 40% rate.
- Permanent and retroactive patch for the AMT.
- Return of the exemption and itemized deduction phase-outs on taxpayers with income over $300,000 (joint) and $250,000 (single).
- One-year extension of 50% bonus depreciation.
- Extension of various tax extenders.
- Legislative Language
- Senate Finance Committee Summary
- White House Fact Sheet
- President Obama Statement.
- Congressional Budget Office Revenue Estimate
- Joint Committee on Taxation Reveue Estimate
- Len Burman (Syracuse), Senate Bill Averts Fiscal Cliff--For Now--While Ignoring our Short- and Long-Term Fiscal Problems
- CCH, Tax Briefing
- Stephen J. Entin (Tax Foundation), Modeling the Economic and Distributional Effects of the Senate Tax Bill
- Howard Gleckman (Tax Policy Center), Congress Kicks the Fiscal Can off the Front Stoop
- Joseph Henchman (Tax Foundation), Details of the Fiscal Cliff Tax Deal
- Ezra Klein (Washington Post), Wonkbook: Everything You Need to Know About the Fiscal Cliff Deal
- Greg Mankiw (Harvard), President Rejects His Bipartisan Bowles-Simpson Commission
- Greg Mankiw (Harvard), The Neverending Quest for a More Redistributionist Tax System
- David Malpass (WSJ op-ed), Nothing Is Certain Except More Debt and Taxes,
- New York Times, Tax Deal’s Passage Ends Latest Standoff
- Dan Shaviro (NYU), The Fiscal Cliff Deal
- Joe Thorndike (Tax Analysts), Is Obama the Worst Legislative Negotiator of the Last Century?
- Wall Street Journal, Congress Passes Cliff Deal
- Wall Street Journal, High Earners Facing First Major Tax Increase in Years
- Wall Street Journal editorial, Obama's Tax Bill Comes Due
- Washington Post, Congress Approves ‘Fiscal Cliff’ Measure
- Washington Post, Tea Party Backers Swallow a Bitter Pill in ‘Cliff’ Bill
- Robert Wood (Forbes), Five Things Everyone Should Know about the Fiscal Cliff Tax Deal
- George Yin (Virginia), 'Fiscal Cliff' Compromise Is a Bad Deal