Futures Soar on Fiscal Cliff Deal

by Marilou Long on January 2, 2013

in deficit spending,Fiscal Policy,taxes

The Dow futures are up 200 points this morning on news that the House passed the Senate bill averting tax rate increases for most Americans. The compromise bill did not address spending cuts, so Congress will have to take up the debt limit and deficit issue at a future date. The payroll tax cut of 2.0% was not extended. The top tax rate for single earners above $400,000 and couples earning $450,000 goes to 39.6%. The capital gain rate and dividend rate also rises to 23.8%(20% plus the 3.8% surcharge for the healthcare act) for these same earning levels, and limits on deductions and exemptions will apply to singles earning over $250,000 and couples earning over $300,000. The estate tax exemption

is set at $5.0 million, and the top rate is set at 40%.

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