Major provisions of the bill...
This bill prevented income tax rates from rising for all except those earing more than $400,000 a year. If this bill had not passed, the 2010 extension to the Bush Tax Cuts would have expired - returning everyone to what tax rates were prior to 2001.
For individuals who earn more than $400,000 a year ($450,000 for couples), the bill...
o Raised the marginal tax rate
to 39.6 percent. The rate had been 35 percent since 2003.
o Permanently raised capital gains
and dividend taxes from 15 percent to 20 percent
o Permanently raised the estate tax
rate from 35 percent to 40 percent (for amounts over $5 million)
For individuals who earn less than $400,000 (and couples earning less than $450,000)...
o Made permanent the Bush-era tax cut rates
o Extended Emergency Unemployment Compensation
for a year.
The bill also...
o Delayed the automatic across-the-board spending cuts known as the sequester
for two months.
o Extended the current farm bill for nine months, averting a hike in milk prices.
o Extended the Earned Income Tax Credit (EITC)
, child tax credit and college tax credit for five years.
o Permanently indexed the Alternative Minimum Tax
for inflation to avoid tax hikes on the middle class.
o Delayed for a year a 27 percent cut in Medicare
payments to doctors.