Welcome Guest. Register Now!  

For 2013 Tax Tips For Year 2013.

LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 12-30-2012, 06:47 PM
TaxGuru's Avatar
Tax Guru
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,401
Blog Entries: 3
What are the component of Revenue Increases and Spending Cuts resulting from the Fiscal Cliff?

The following represents the revenue and spending measures that are set to expire or take effect at year's end.

Components of Tax Revenue Increases
1. Expiration of Bush Tax Cuts & AMT Patch.
the "Bush tax cuts," will expire on December 31, 2012, raising all income tax rates (top will go from 35 to 39.6 percent), as well as rates on estate and capital gains taxes. The alternative minimum tax (AMT) will also automatically apply to millions more citizens.

2. Payroll Tax Cut.
The Social Security payroll tax holiday will expire December 31, raising the rate from 4.2 to 6.2 percent.

3. Expiration of Research and Experimentation tax credit,
These tax credits are due to sunset at years' end.

4. Affordable Care Act Taxes.
Some provisions in the Obama health-care legislation, including increased tax rates on high-income earners, are set to take effect in January 2013.

Components of Spending Cuts
The automatic spending cuts legislated by the Budget Control Act of 2011 will hit January 2, and half of the scheduled annual cuts of $109 billion per year from 2013-2021 will come directly from the national defense budget, half from non-defense. However, some 70 percent of mandatory spending will be exempt.

1.Extended Unemployment Benefits.
The federal unemployment benefits, last extended in February, will expire at year's end.

2. Medicare "Doc Fix."
The rates at which Medicare pays physicians will decrease nearly 30 percent on December 31.

Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.

Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
What are the potential implications of the expiration of Bush-Era Tax cuts for the Taxapayers in 2012? TaxGuru For 2012 0 12-20-2012 03:18 PM
What is a flexible spending arrangement? TaxGuru Miscellaneous 0 09-20-2009 08:36 PM
Would this crisis prompt Congress to issue a 2nd Fiscal Stimulus Package? adam007 Miscellaneous 1 10-12-2008 11:31 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 » Income
 » IRA/Sep
 » Medical
 » Payroll
Forum for CPAs
Financial Planning

» Recent Tax Q&A
No Threads to Display.