The Fiscal Cliff Fix – Has Congress Reached The Deal Yet?
There is nothing like a deadline to force our two major political parties to compromise. Recent reports suggest that a deal on solving the fiscal cliff may be nearing resolution:
National Review is reporting some sketchy details, but here are the main points:
- Current tax rates would be permanently extended for singles making $400,000 or below, and permanently extended for couples making $450,000 or below
- For singles, capital gains and dividends of $400,000 or below would be permanently taxed at 15 percent; capital gains and dividends above $400,000 would be permanently taxed at 20 percent
- For couples, capital gains and dividends of $450,000 or below would be permanently taxed at 15 percent; capital gains and dividends above $450,000 would be taxed at 20 percent
- The Alternative Minimum Tax would be permanently patched
- Estates over $5 million would be taxed at 40 percent, and that tax rate would be permanently extended