- Payroll tax cuts will result in a 2 percent pay decrease for workers.
- The alternative minimum tax (AMT) patch, or exemption, will fall back to $45,000 for joint filers, which could lead to a tax increase for many unsuspecting families. The exemption for joint filers in 2011 was $74,450.
- The option for taxpayers to elect to claim general sales taxes instead of income taxes as an itemized deduction will expire.
- The phase out of itemized deductions and exemptions for those with high “adjusted gross incomes” (AGI) will be reintroduced.
- The child tax credit will be cut in half, from $1,000 to $500.
- There will be a reduction in the dependent care credit and adoption credit.
- The 30 percent tax credit for consumer energy efficiency will turn off.
- The $250 teacher deduction for supplies will be erased.
- Marginal tax rates will increase, with the top two brackets moving from 33 and 35 percent to 36 and 39.6 percent, respectively.
- Capital gain rates will rise from 15 to 20 percent.
- Qualified dividends now taxed at 15 percent will be taxed as ordinary income, with a top rate of 39.6 percent.
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