“Fiscal Cliff” Deal Makes Permanent 82 Percent of Bush Tax Cuts

January 3, 2013 at 2:42 pm

Our new report explains that this week’s “fiscal cliff” budget deal makes permanent 82% of President Bush’s tax cuts.  Here’s an excerpt:

The American Taxpayer Relief Act of 2012 (ATRA), which President Obama signed into law last night, makes permanent 82 percent of President Bush’s tax cuts.

The Joint Committee on Taxation (JCT) and Congressional Budget Office estimate that making permanent all of the Bush tax cuts would have cost $3.4 trillion over 2013-2022….

JCT estimates show that ATRA makes all but $624 billion of those $3.4 trillion in tax cuts permanent.  It thus makes permanent 82 percent of the Bush tax cuts, while letting 18 percent expire.

The remaining 18% of the Bush tax cuts that were allowed to expire includes: the expiration of cuts in the income, capital gains, and dividend tax rates for filers with taxable income above $450,000 for married couples and $400,000 for singles; allowing limits on personal exemptions and itemized deductions to return for filers with adjusted gross income above $300,000 for married couples and $250,000 for singles; and raising the estate tax rate to 40 percent, from the 35 percent rate in place in 2012.

Click here for the full report.

Print Friendly

Your Comment

Comment Policy:

Thank you for joining the conversation about important policy issues. Comments are limited to 1,500 characters and are subject to approval and moderation. We reserve the right to remove comments that:

  • are injurious, defamatory, profane, off-topic or inappropriate;
  • contain personal attacks or racist, sexist, homophobic, or other slurs;
  • solicit and/or advertise for personal blogs and websites or to sell products or services;
  • may infringe the copyright or intellectual property rights of others or other applicable laws or regulations; or
  • are otherwise inconsistent with the goals of this blog.

Posted comments do not necessarily represent the views of the CBPP and do not constitute official endorsement by CBPP. Please note that comments will be approved during the Center's business hours. If you have questions, please contact communications@cbpp.org.



 characters available