Congressional Dish

The back story on the "fiscal cliff" debacle, the House's sad excuse for a compromise, and the contents of the fiscal cliff bill that became law on 1/3/13. H.R. 8: THE OBAMA-SENATE FISCAL CLIFF BILL (SIGNED INTO LAW 1/3/13) ‘‘American Taxpayer Relief Act of 2012'' TITLE I—GENERAL TAXES SEC. 101. PERMANENT EXTENSION OF MOST 2001 BUSH TAX CUTS People making over $400,000 as individuals, or $450,000 as a couple, will be taxed at 39.6% instead of the current 35% Estate tax rate will be raised to 40% from 35%. No taxes on the first $5 million of inheritance. SEC. 102. INCREASE CAPITAL GAINS TAXES TO 20%, FROM 15% SEC. 103. EXTENSION OF 2009 STIMULUS BILL TAX CREDITS 5 year extension of college tax credits Total credit cannot exceed $2,500 Tax credit decreases for families with gross incomes of $80,000 or $160,000 for a married couple. 5 year extension of the Child Tax Credit Eligible families receive $1,000 tax credit per child under age 17. Tax credit decreases for families with gross incomes of $75,000, or