Cliff crisis lifted Details of the agreement

Cliff crisis lifted Agreement details "Alberta Times" Hours before the deadline for automatic tax increase of $600 billion and the start of the expenditure reduction mechanism, the Senate raised wages in the new year on December 31...

Cliff crisis lifted Agreement details "Alberta Times" Hours before the deadline for automatic tax increases of $600 billion and the start of the spending cuts mechanism, the Senate reached an agreement on the evening of December 31 to avoid the so-called "fiscal cliff." President Obama warned that there were still "issues to be resolved" on the tentative deal, which still needs to be approved by the Senate and the Republican-dominated House of Representatives. Here are the details of the agreement: long-term unemployment benefits will be extended for one year; the defense and interior spending cuts of 111 billion yuan will be postponed for two months to continue negotiations on broader spending reductions. According to the Senate agreement, the income tax rate will be increased to 39.6% for individuals with an annual income of more than 400,000 yuan, and for families with an annual income of more than 450,000 yuan; for individuals with an annual income of more than 250,000 yuan, and for families with an annual income of more than 300,000 yuan, their itemized deductions will be capped, and personal tax exemptions will also be gradually abolished. This is a clear victory for Obama, who advocates increasing taxes on the rich. The agreement also includes restoring the Social Security payroll tax from 4.2% to the original 6.2%; raising the top estate tax rate from 35% to 40%; the personal estate tax exemption is 5 million yuan, and the family inheritance tax exemption is 10 million yuan. ; The tax rate for individuals with capital gains and dividends exceeding 400,000 yuan and families exceeding 450,000 yuan will be increased from 15% to 20%; the additional minimum tax will be permanently adjusted for inflation to prevent nearly 30 million middle- and upper-income taxpayers from paying this tax; the child tax credit, the earned income tax credit and the college tuition tax credit of up to 2,500 yuan will be extended for five years; the research and development tax exemption and the wind power generation tax exemption will be extended to the end of 2013. The 50% bonus depreciation will be extended for one year; the payment to Medicare doctors will be reduced by 27% and implemented for one year.