REUTERS

REUTERS Key points of fiscal cliff deal The US House of Representatives approved a Senate bill late on Tuesday night to avert $600bn in automatic tax increases and spending cuts known as the "fiscal cliff." Here are the key details: By Reuters: 02 Jan 2013 • Postpones the first installment of automatic spending cuts for two months while Congress works on a plan replace them. • Raises $620bn in revenue over 10 years through a series of tax increases on wealthier Americans. • Permanently extends tax cuts enacted in 2001 under former Republican President George W. Bush for income below $400,000 per individual, or $450,000 per family. Income above that level would be taxed at 39.6pc, up from the current top rate of 35pc. • Above that income threshold, capital gains and dividends tax rates would return to 20pc, from 15pc. • Caps personal exemptions and itemized deductions for income above $250,000, or $300,000 per household. • Raises estate tax rate to 40pc for estates of more than $10m per couple, up from the current level of 35pc. • Includes a permanent fix for the alternative minimum tax. • Extends unemployment insurance benefits for one year for two million people. • Extends child tax credit, earned income tax credit, and tuition tax credit for five years. • Extends research and experimentation tax credit, and the wind production tax credit through the end of 2013. Extends 50pc bonus depreciation for one year. • Avoids a cut in payments to doctors treating patients on Medicare - the "doc fix." EFTA00598423