Saturday 20 December 2014

Key points of deal at a glance

Published 02/01/2013 | 05:00

• Postpones for two months the start of $1.2 trillion (€0.9trn) in automatic spending cuts over 10 years, known as the "sequester". For those two months, $24bn in savings would be substituted. Half of those savings would be split between defence and non-defence programmes. The other half includes new revenues.

• Raises $600bn in revenue over 10 years through a series of tax hikes on the wealthy.

• Permanently extends tax cuts made in 2001 by Republican President George W Bush for income below $400,000 (e530,000) per individual, or $450,000 per family. Income above that level would be taxed at 39.6pc, up from 35pc. Above that income threshold, capital gains and dividend tax rates would return to 20pc, from 15pc.

• Caps personal exemptions and itemised deductions for income above $250,000, or $300,000 per household.

• Raises estate tax rate to 40pc for estates of more than $10m per couple, up from 35pc.

• Includes a permanent fix for the alternative minimum tax.

• Extends unemployment insurance benefits for one year for two million people.

• Extends child tax credit, earned income tax credit, and tuition tax credit.

Irish Independent

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