Fiscal Cliff - How Does The Deal Affect You? - News and Weather For The Quad Cities -

Fiscal Cliff - How Does The Deal Affect You?

Updated:
  • Most Popular StoriesMost Popular StoriesMore>>

  • Fire At Winding Hills Apartment Complex In Davenport

    Fire At Winding Hills Apartment Complex In Davenport

    Monday, September 15 2014 1:27 PM EDT2014-09-15 17:27:58 GMT
    A fire at the Winding Hills apartment complex in Davenport forced an entire building to be evacuated. Firefighters were called to the Eastern Avenue complex around 9:30 a.m...More >>
    A fire at the Winding Hills apartment complex in Davenport forced an entire building to be evacuated. Firefighters were called to the Eastern Avenue complex around 9:30 a.m...More >>
  • Elderly Couple Tie Knot After 70 Years

    Elderly Couple Tie Knot After 70 Years

    Thursday, September 11 2014 7:17 PM EDT2014-09-11 23:17:49 GMT
    Seventy years is a lifetime for many of us but for Vivian and Alice, it wasn't too late to get married. Now in their 90's, together for more than 70 years, they tie the knot.More >>
    Seventy years is a lifetime for many of us but for Vivian and Alice, it wasn't too late to get married. Now in their 90's, together for more than 70 years, they tie the knot.More >>
  • PSL Get Fit Challenge

    PSL Get Fit Challenge

    PSL Get Fit Challenge

    Thursday, September 11 2014 1:25 PM EDT2014-09-11 17:25:04 GMT
     Sign up for another exciting PSL Get Fit Challenge from our friends at Fitness Xpress and Body Dynamics! This years challenge starts October, 1 so sign up today! More >>
    Sign up for another exciting PSL Get Fit Challenge from our friends at Fitness Xpress and Body Dynamics! This years challenge starts October 1, so sign up today! More >>

The House is voting on a Senate approved fiscal cliff deal. However, what exactly is in the deal? The legislation will prevent tax increases for most Americans. The main points are income tax rates, estate taxes, tax credits, unemployment benefits, and automatic spending cuts.

Income tax rates are at the center of the fiscal cliff deal. Current tax rates for those making less than $400,000 and couples earning less than $450,000 will stay the same. Anyone who makes more than that will see a permanent tax increase.

Another change, payroll taxes will rise to 6.2% from 4.2% on workers first $113,700 of income. Estate taxes will also see a permanent increase from 35% to 40% on the value of estates over $5-million.

Tax credits from the 2009 stimulus will be extended. They include: a child tax credit, an expanded earned income credit and refundable credit for college tuition. Some business tax credits will be extending for a year. Unemployment insurance will also be expanded for one year.

The fiscal cliff deal also prevents $110-billion in automatic spending cuts. Instead, the cuts to military and federal agencies will be delayed for 2 months.

Powered by WorldNow

805 Brady Street, Davenport, IA 52803

Telephone: 563.383.7000
Fax: 563.383.7131
Email: news@kwqc.com

Can’t find something?
Powered by WorldNow
All content © Copyright 2000 - 2014 Young Broadcasting of Davenport, Inc. A Media General Company.