So what exactly was in the 2012 fiscal cliff deal that congress passed at the beginning of 2013?

I understand that they further extended the Bush tax cuts for people making less than $400 thousand to $500 thousand per year, and the sequester postponed for a bit, but was there anything else significant that happened?

1 Answer 1


Here is a good article from the Wall Street journal.

In summary:

  • Income-tax rates. The top rate on ordinary income such as wages for joint filers earning more than $450,000 ($400,000 for single filers) would rise to 39.6%.
  • Investment tax rates. For joint filers with income above $450,000 ($400,000 single), the top rate on long-term capital gains and dividends would rise to 20% from 15%.
  • PEP and Pease provisions. The deal restores and makes permanent two backdoor tax increases for joint filers with incomes above $300,000 ($250,000 for singles).
  • Estate and gift tax. The current 35% top tax rate on amounts above [$5 million] would increase to 40%.
  • Depreciation. A one-year extension of current "bonus" depreciation rules, which allow businesses to deduct up to 50% of the cost of a wide variety of property and equipment, excluding real estate.
  • The Bush tax cuts are generally extended, with the exception of payroll taxes, which revert to their pre-Bush level (up 2%)

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .