After the Senate, even the U.S. House of Representatives approved the agreement that avoids the "fiscal cliff". The vote ended with 257 votes in favor and 164 against. It provides in particular an increase of the tax burden for the wealthiest taxpayers: the tax rate on incomes over 450 thousand dollars a year will rise from 35% currently to 39.5%.
President Barack Obama welcomed the approval stressing that he had thereby complied with the promise made in the election campaign of a tax system more equitable. Barack Obama warned Republicans not willing to negotiate the conditions for an increase of the debt ceiling: “We can not pay the bill that it has already been presented…If Congress refuses to allow the U.S. government to pay this bill on time, the consequences for the entire global economy would be catastrophic, far worse than the fiscal cliff" Obama concluded, noting that a similar situation in 2011 had led to a downgrade of the debt rating by Standard & Poor's.
CONTENT:
- MORE TAXES FOR SUPER RICH. Increased to 39.6% from 35% tax rate for people who earn more 'than $ 400,000 a year and families whose earnings exceed $ 450,000 per year.
- EXEMPTIONS FOR MIDDLE CLASS. This confirmed the tax cuts for middle class families and make permanent the rate of the minimum tax.
- CLOSE ON DIVIDENDS AND CAPITAL GAINS. Will be taxed at 20% for people earning over $ 400,000 a year and families with more 'than $ 450,000 a year.
- INHERITANCE TAX INCREASE. The rate is increased from 35% to 40% on the properties' that exceed the value of 10 million dollars.
- EXTENSION OF UNEMPLOYMENT ALLOWANCE . The benefits for the long-term unemployed are extended until the end of 2013.
- BENEFITS FOR FAMILIES WITH CHILDREN AND STUDENTS. The tax credits for those who have children and students who have to pay the college - always in the middle class - are extended for five years.
- A RELIEF to enterprises that innovate. Are extended until the end of 2013 the tax credits for companies that invest in research and innovation and for those in the field of renewable energy.
- 'DOC FIX'. Stop the payment reduction to doctors of the Medicare program (for the elderly and disabled).
- SPENDING CUTS. Are postponed for two months and replaced with new revenue and targeted cuts in some sectors such as defense.
President Barack Obama welcomed the approval stressing that he had thereby complied with the promise made in the election campaign of a tax system more equitable. Barack Obama warned Republicans not willing to negotiate the conditions for an increase of the debt ceiling: “We can not pay the bill that it has already been presented…If Congress refuses to allow the U.S. government to pay this bill on time, the consequences for the entire global economy would be catastrophic, far worse than the fiscal cliff" Obama concluded, noting that a similar situation in 2011 had led to a downgrade of the debt rating by Standard & Poor's.
CONTENT:
- MORE TAXES FOR SUPER RICH. Increased to 39.6% from 35% tax rate for people who earn more 'than $ 400,000 a year and families whose earnings exceed $ 450,000 per year.
- EXEMPTIONS FOR MIDDLE CLASS. This confirmed the tax cuts for middle class families and make permanent the rate of the minimum tax.
- CLOSE ON DIVIDENDS AND CAPITAL GAINS. Will be taxed at 20% for people earning over $ 400,000 a year and families with more 'than $ 450,000 a year.
- INHERITANCE TAX INCREASE. The rate is increased from 35% to 40% on the properties' that exceed the value of 10 million dollars.
- EXTENSION OF UNEMPLOYMENT ALLOWANCE . The benefits for the long-term unemployed are extended until the end of 2013.
- BENEFITS FOR FAMILIES WITH CHILDREN AND STUDENTS. The tax credits for those who have children and students who have to pay the college - always in the middle class - are extended for five years.
- A RELIEF to enterprises that innovate. Are extended until the end of 2013 the tax credits for companies that invest in research and innovation and for those in the field of renewable energy.
- 'DOC FIX'. Stop the payment reduction to doctors of the Medicare program (for the elderly and disabled).
- SPENDING CUTS. Are postponed for two months and replaced with new revenue and targeted cuts in some sectors such as defense.
Fabrizio Creston
