The fiscal cliff is otherwise known as the sharp decline in the budget deficit that could have occurred beginning in 2013 due to increased taxes and reduced spending as required by previously enacted laws. The fiscal cliff was largely eliminated by the eleventh-hour passage of the American Taxpayer Relief Act of 2012.
- 39.6% Tax Rate for incomes above $400,000 ($450,000 for families)
- All Other Bush-Era Tax Rates Extended
- 20% Maximum Capital Gains / Dividend Tax Rate
- Maximum 40% Estate / Gift Tax Rate
- Permanent AMT Patch
- One-Year Extension of Many Business Tax Extenders