After midnight last night the Senate passed a tax bill in an effort to avert the fiscal cliff. In short, those joint filers making over $450K will have their top rates increased to 39.6%. Capital gains and dividends will be increased to 20% for them as well. Also there will be a lot of phaseouts of deductions for those filers making more than $250K.
Perhaps the biggest taxpayer victory is that the estate tax exemption will stay at $5MM per person and be transferable between spouses. The highest rate will now be 40%.
Of course, keep in mind that this does not effect the obamacare taxes that are to take effect--namely the 3.8% investment tax, amongst several others
Now its up to the House. More to follow shortly.
