WASHINGTON, D.C. -- CBS is reporting that negotiators have reached an agreement on the "fiscal cliff" with only a few hours left before the new year. Vice President Joe Biden went to Capitol Hill to meet with Senate Democrats about the details of the new deal.
CBS is saying that its unclear on exactly when the Senate will vote. They said the new deal is expected to pass and the House should be voting on the new proposal tomorrow.
Here are details of the deal according to CBS:
- Tax rates: current tax rates will be extended for all wage earners making below $400,000 and couples making below $450,000. This was a key concession for both Republicans and Democrats. Democrats wanted the threshold for tax increases to rest at $250,000 and Republicans didn't want marginal tax rates to increase for anyone.
- The estate tax: it was set to increase from rom 35 percent to 55 percent in 2013. Instead, the compromise sets the new rate at 40 percent with the first $5 million worth of property exempt from being taxed.
- Capital gains tax: Capital gains and dividend tax rates will increase from 15 to 20 percent.
- Alternative Minimum Tax: a permanent fix to the tax that would hit middle class families
- "Doc Fix": doctors will be shielded from a massive reimbursement gap for treating Medicare patients.
- Unemployment benefits: unemployed workers will receive their benefits which expired over the weekend.
- Renewable energy tax credit: the tax credit for renewable energy companies will be extended for another year.
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