Signed by President Barack Obama II

Vote Smart's Synopsis:

Vote to concur with Senate amendments and pass a bill that permanently extends tax cuts established in 2001 and 2003 and increases the income tax rate for certain individuals.

Highlights:

• Specifies that the income tax rate will be 39.6 percent for the following incomes for tax years beginning in the 2013 tax year (Sec. 101):
• An income of $450,000 for married individuals filing jointly;
• An income of $425,000 for individuals filing as head of household; and
• An income of $400,000 for single individuals.

• Increases the capital gains tax rate from 15 to 20 percent for the following capital gains incomes beginning January 1, 2013 (Sec. 102):
• An income of $450,000 for married individuals filing jointly;
• An income of $425,000 for individuals filing as head of household; and
• An income of $400,000 for single individuals.

• Increases the maximum estate tax from 35 to 40 percent for tax years beginning January 1, 2013 (Sec. 101).

• Increases the income amount for determining the alternative minimum taxable incomes to the following amounts permanently (Sec. 104):
• From incomes of $45,000 to $78,750 in the case of married individuals filing jointly or a surviving spouse; and
• From incomes of $33,750 to $50,600 in the case of a single individual who is not a surviving spouse.

• Extends the following acts on a permanent basis (Secs. 101-102):
• The Economic Growth and Tax Relief Reconciliation Act of 2001; and
• The Jobs and Growth Tax Relief Reconciliation Act of 2003.

• Extends the following tax credits from 2012 to 2018 (Sec. 103):
• The American Opportunity Tax Credit;
• The Child Tax Credit; and
• The Earned Income Tax Credit

• Extends the Indian Employment Tax Credit from December 31, 2011 until December 31, 2013 (Sec. 304). 

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that permanently extends tax cuts established in 2001 and 2003 and increases the income tax rate for certain individuals.

Highlights:

• Specifies that the income tax rate will be 39.6 percent for the following incomes for tax years beginning in the 2013 tax year (Sec. 101):
• An income of $450,000 for married individuals filing jointly;
• An income of $425,000 for individuals filing as head of household; and
• An income of $400,000 for single individuals.

• Increases the capital gains tax rate from 15 to 20 percent for the following capital gains incomes beginning January 1, 2013 (Sec. 102):
• An income of $450,000 for married individuals filing jointly;
• An income of $425,000 for individuals filing as head of household; and
• An income of $400,000 for single individuals.

• Increases the maximum estate tax from 35 to 40 percent for tax years beginning January 1, 2013 (Sec. 101).

• Increases the income amount for determining the alternative minimum taxable incomes to the following amounts permanently (Sec. 104):
• From incomes of $45,000 to $78,750 in the case of married individuals filing jointly or a surviving spouse; and
• From incomes of $33,750 to $50,600 in the case of a single individual who is not a surviving spouse.

• Extends the following acts on a permanent basis (Secs. 101-102):
• The Economic Growth and Tax Relief Reconciliation Act of 2001; and
• The Jobs and Growth Tax Relief Reconciliation Act of 2003.

• Extends the following tax credits from 2012 to 2018 (Sec. 103):
• The American Opportunity Tax Credit;
• The Child Tax Credit; and
• The Earned Income Tax Credit

• Extends the Indian Employment Tax Credit from December 31, 2011 until December 31, 2013 (Sec. 304). 

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that extends tax cuts established in 2001 and 2003 until the end of 2013.

Highlights:

• Extends the Economic Growth and Tax Relief Reconciliation Act of 2001 from December 31, 2012 to December 31, 2013 (Sec. 102).

• Extends the Jobs and Growth Tax Relief Reconciliation Act of 2003 from December 31, 2012 to December 31, 2013 (Sec. 102).

• Requires Congress to introduce a bill to provide for “comprehensive tax reform” no later than April 30, 2013, and requires this bill to be expedited through the House of Representatives and the Senate (Sec. 203).

• Requires the tax reform bill to contain certain policy elements including, but not limited to, the following (Sec. 203):
• Consolidation of the 6 individual income tax brackets into no more than 2 brackets and at a rate of no more than 25 percent for each bracket;
• Reduction of the corporate tax rate to no more than 25 percent;
• Repeal of the Alternative Minimum Tax;
• Proposals that expand the tax base to maintain revenue between 18 and 19 percent of the economy; and
• Conversion of the tax system from a “worldwide” system to a “territorial” system.

Full Bill Text

Full Bill Text