ccording to the deal:
-- The tax rate for individuals making more than $400,000 and couples making more than $450,000 will rise from the current 35% to the Clinton-era rate of 39.6%.
-- Itemized deductions would be capped for individuals making $250,000 and for married couples making $300,000.
-- Taxes on inherited estates will go up to 40% from 35%.
-- Unemployment insurance would be extended for a year for 2 million people.
-- The alternative minimum tax -- a perennial issue -- would be permanently adjusted for inflation.
-- Child care, tuition and research and development tax credits would be renewed.
-- The "Doc Fix" -- reimbursements
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Payroll taxes still set to go up
Despite the last-minute fiscal cliff agreements, Americans are still likely to see their paychecks shrink somewhat due to a separate battle over payroll taxes.
The government temporarily lowered the payroll tax rate in 2011 from 6.2% to 4.2% to put more money in the pockets of Americans. That adjustment, which has cost about $120 billion each year, expired Monday.
Now, Americans earning $30,000 a year will take home $50 less per month. Those earning $113,700 will lose $189.50 a month
thelio wrote: »
I make less then $30,000/year. will i be spared?
so the super rich will still be paying lesser tax this the regular folks? this is what confuses me. is anyone coming out of this a winner?
coilynapp wrote: »
RedCatWaves wrote: »
The payroll tax (social security tax) is going back to it's former level. It was lowered 2 years ago as a "stimulus". Unfortunately, there is a cap (at $110K) on payroll tax, so rich folks and super-rich folks, don't pay more than middle class folks earning under $110K, so that's why the tax going back to former levels is disproportionately going to hurt lower income people.
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