WASHINGTON, D.C. -- After midnight on the first of the new year the Senate voted 89 to 8 to pass legislation blocking tax increases and spending cuts. The House should be voting on the new proposal today.
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 from 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.
For more information go here.
