Update to I am Tired of Fiscal Cliff Panic

 

Earlier this week I posted this rant on the Fiscal Cliff

This blip is from the NY Times

The article “Seeking Ways to Raise Taxes but Leave Tax Rate As Is” gives additional background about the most recent fiscal negotiations.

Related | The article “Q&A: Understanding the Fiscal Cliff” from The Times’s Economix blog explains what might happen if the United States goes over the fiscal cliff:

Almost everyone who pays taxes would see a hit to take-home pay in the first paycheck of January. The lowest income tax rate would rise to 15 percent from 10 percent. The highest rate would rise to 39.6 percent from 35 percent. The 25 percent, 28 percent and 33 percent rates would rise to 28 percent, 31 percent and 36 percent, respectively. Most capital gains taxes would rise to 20 percent from 15 percent. The tax rate on dividends, now set at 15 percent, would jump to ordinary income tax rates, and since most dividend taxes are paid by the wealthy, that would mean a new dividend tax rate of 39.6 percent. The exemption on taxation of inherited estates would drop to $1 million from $5 million. The tax rate above that exemption would jump to 55 percent from 35 percent.

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