Here is a summary of the main provisions of the agreement, the tax reduction was approved by the Senate yesterday and isbeing debated in the House today.
Tax cuts on personal income:
Tax rate for taxpayers with children regardless of income.10% Tax Support - by 2012 the 10% tax individual income tax rate will be lower for individuals who make up to $ 8,500 and married couples making up to $ 17,000. If the extension of tax cuts the tax increase was approved by 10% to 15%.Extended until 2012 the existing tax brackets, which are due at the end of 2010-25%, 28%, 33% and 35% tax bracket. The tax rate of 35% applies to those over $ 379.150 per year. If the extension of tax cuts the tax rate would increase from 35% to 39.6%.Temporarily repealing the restrictions on itemized deductions - which extends the repeal of the limitation of itemized deductions for two years for those with high incomes.
Income tax holiday:
By 2011, employees paid 6.2 percent Social Security payroll taxes earned up to $ 106,800 will earn a payroll tax holiday temporarily by two percentage points and reduced its contribution by 4.2 percent salary. The Independents have a reduction in payroll taxes to own 12.4 percent percent at 10:04 am.
Capital gains and dividends:
Currently extending capital gains and dividend rates - the current extension of capital gains and dividends rate to taxpayers for two years until 2012 because of lower taxes. The current rates are zero percent for taxpayers in the tax rate of 25% and 15% for taxpayers, including 25% tax bracket or higher. If expiring tax provisions on capital gains to 10% and 20%. Dividends are taxed at the tax rates on ordinary income.
Property tax
Reduce property taxes for two years - the proposal leaves assets $ 5,000,000 $ 10,000,000 per person and per couple to go to heirs tax-free by 2012. Amounts in excess of $ 5,000,000 and 10 million would be taxed, the tax rate of 35%.
Marriage penalty relief
Currently extend expiring in increasing the standard deduction for married couples.temporary extension of unemployment benefits:Allows one-year extension of federal unemployment benefits for unemployed and need money.
What else is included in the proposed tax cut?
Energy
Biodiesel and renewable - stretches to 2011 of $ 1.00 per gallon tax credit for biodiesel production.Credit for energy efficiency of new homes - extends until 2011 tax credit for manufacturers of energy-efficient homes.Alternative fuels credit - extend through 2011 the tax credit is $ 0.50 (U.S. cents) per gallon for alternative fuels.Ethanol - extends until 2011 tax credit per gallon of ethanol. Including the existing $ 0.54 (cents) tariffs on imported ethanol.energy-efficient appliances - extends until 2011 tax credit for manufacturers of major appliances with high efficiency.
People
Primary and secondary teachers - extending the deduction of $ 250 for the tuition expenses for teachers pocket.The deduction of state and local general sales taxes - Detailed extends tax deductions for state and local sales taxes instead of deducting income.Deduction for tuition and other costs - expands the tax deduction for qualified education expenses.Mass transit benefits - tax exemption also applies to passengers using public transport. Enable people to travel tax-free dollars by public transport.Child Tax Credit - $ 1,000 more generous tax credit for children.Earned Income Tax Credit (EITC) - more generous EITC for families with low incomes.
Business
Research and development - from research and development (R & D) investment tax credit for the economy.Credit railway track construction - is being expanded in the 2011 appropriations for the maintenance of track.Mine Rescue Team credit - extends until 2011 tax credit to the members of mine rescue train.Mine Safety Equipment - depreciation is 50 percent of the premium for certain safety equipment qualified mine.Real Estate Development - extends until 2011 tax cuts for capital improvements for restaurants and other commercial buildings.Entertainment complexes Motorsports (NASCAR) - covers 2011 tax incentives for the improvement of capital facilities and land in the motor sports entertainment complex support.Inventory - Food extended until 2011 the provision that company a larger deduction for donations of food stocks.Film and television costs - continue until 2011 provided that the production of films and television were created at the expense of the first $ 15,000,000, cost of the United States allowed. (20 million dollars, if it occurs in a depressed region in the United States)Empowerment Zones - extends until 2011 the designation of certain economically depressed areas such as empowerment zones. Businesses and individuals residing in the Empowerment Zone are eligible for special tax incentives.
Tax cuts on personal income:
Tax rate for taxpayers with children regardless of income.10% Tax Support - by 2012 the 10% tax individual income tax rate will be lower for individuals who make up to $ 8,500 and married couples making up to $ 17,000. If the extension of tax cuts the tax increase was approved by 10% to 15%.Extended until 2012 the existing tax brackets, which are due at the end of 2010-25%, 28%, 33% and 35% tax bracket. The tax rate of 35% applies to those over $ 379.150 per year. If the extension of tax cuts the tax rate would increase from 35% to 39.6%.Temporarily repealing the restrictions on itemized deductions - which extends the repeal of the limitation of itemized deductions for two years for those with high incomes.
Income tax holiday:
By 2011, employees paid 6.2 percent Social Security payroll taxes earned up to $ 106,800 will earn a payroll tax holiday temporarily by two percentage points and reduced its contribution by 4.2 percent salary. The Independents have a reduction in payroll taxes to own 12.4 percent percent at 10:04 am.
Capital gains and dividends:
Currently extending capital gains and dividend rates - the current extension of capital gains and dividends rate to taxpayers for two years until 2012 because of lower taxes. The current rates are zero percent for taxpayers in the tax rate of 25% and 15% for taxpayers, including 25% tax bracket or higher. If expiring tax provisions on capital gains to 10% and 20%. Dividends are taxed at the tax rates on ordinary income.
Property tax
Reduce property taxes for two years - the proposal leaves assets $ 5,000,000 $ 10,000,000 per person and per couple to go to heirs tax-free by 2012. Amounts in excess of $ 5,000,000 and 10 million would be taxed, the tax rate of 35%.
Marriage penalty relief
Currently extend expiring in increasing the standard deduction for married couples.temporary extension of unemployment benefits:Allows one-year extension of federal unemployment benefits for unemployed and need money.
What else is included in the proposed tax cut?
Energy
Biodiesel and renewable - stretches to 2011 of $ 1.00 per gallon tax credit for biodiesel production.Credit for energy efficiency of new homes - extends until 2011 tax credit for manufacturers of energy-efficient homes.Alternative fuels credit - extend through 2011 the tax credit is $ 0.50 (U.S. cents) per gallon for alternative fuels.Ethanol - extends until 2011 tax credit per gallon of ethanol. Including the existing $ 0.54 (cents) tariffs on imported ethanol.energy-efficient appliances - extends until 2011 tax credit for manufacturers of major appliances with high efficiency.
People
Primary and secondary teachers - extending the deduction of $ 250 for the tuition expenses for teachers pocket.The deduction of state and local general sales taxes - Detailed extends tax deductions for state and local sales taxes instead of deducting income.Deduction for tuition and other costs - expands the tax deduction for qualified education expenses.Mass transit benefits - tax exemption also applies to passengers using public transport. Enable people to travel tax-free dollars by public transport.Child Tax Credit - $ 1,000 more generous tax credit for children.Earned Income Tax Credit (EITC) - more generous EITC for families with low incomes.
Business
Research and development - from research and development (R & D) investment tax credit for the economy.Credit railway track construction - is being expanded in the 2011 appropriations for the maintenance of track.Mine Rescue Team credit - extends until 2011 tax credit to the members of mine rescue train.Mine Safety Equipment - depreciation is 50 percent of the premium for certain safety equipment qualified mine.Real Estate Development - extends until 2011 tax cuts for capital improvements for restaurants and other commercial buildings.Entertainment complexes Motorsports (NASCAR) - covers 2011 tax incentives for the improvement of capital facilities and land in the motor sports entertainment complex support.Inventory - Food extended until 2011 the provision that company a larger deduction for donations of food stocks.Film and television costs - continue until 2011 provided that the production of films and television were created at the expense of the first $ 15,000,000, cost of the United States allowed. (20 million dollars, if it occurs in a depressed region in the United States)Empowerment Zones - extends until 2011 the designation of certain economically depressed areas such as empowerment zones. Businesses and individuals residing in the Empowerment Zone are eligible for special tax incentives.
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