In case you missed it: The last-minute Fiscal Cliff deal passed by Senate

 U.S. Senate passes a last-minute bill to avoid the fall over the Fiscal Cliff

On New Years Day, the U.S. Senate was able to pass a bill (89:9) that could potentially prevent the U.S. from experiencing a large economic hit, or at least post-pone that threat. Not all issues of the Fiscal Cliff , and perhaps the ones most detrimental to our economy, have been addressed however, leaving Congress to extend the cuts to the Federal budget for two more months. The following is included in the bill proposed:

-An increase in taxes for married couples with an income of at least $450k, $400k for singles; a rate increase of 4.6% from

-For the same group of people, an increase in taxes on dividends & capital gains; from 15 to 20%

-Estates valued over $5 million will see a 5% increase in taxes (indexed to rate of inflation)

-A 9 month extension on the farm bill- preventing milk prices from doubling

-An extension of unemployment benefits up to a year

-A 5 year extension on the college tuition tax credit

-An inflation adjusted Alternative Minimum Tax rate, an extension to the “doctor fix” which avoids pay cuts from Medicare doctors, as well as a number of other business tax benefits such as renewable energy

-A revocation of the $900/year salary raise of Congress

The bill does not include an extension of the a payroll  tax break , meaning workers will see an increase in 2% taken from their paychecks.

Keep a lookout for the Smart Money Newsletter later this week for additional updates on what is going on in the financial markets and of  course the ongoing fiscal cliff negotiations.

Source: http://www.forbes.com/sites/rickungar/2013/01/01/heres-the-deal-on-the-fiscal-cliff-deal/

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Keith Springer

About Keith Springer

Keith Springer is FOX40's Financial Analyst , author of "Facing Goliath: How to Triumph in the Dangerous Market Ahead", radio host of "Smart Money with Keith Springer" on 1530 KFBK, editor of "Smart Money Newsletter", a financial planner, a market technician, a financial writer, multinational philanthropist, founder of Top Down Tactical™ and President and founder of Springer Financial Advisors in Sacramento CA, an SEC Registered Investment Advisory Firm. He has developed a proprietary process for successfully building tax-efficient and retirement portfolios and has been providing specialty wealth management services for over 27 years. He can be reached at 916-925-8900 or Keith@KeithSpringer.com.
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