News

Senate passes fiscal cliff package

Certain portions of the 2008 Farm Bill would be extended as part of the fiscal cliff package being considered in Congress.  Although details of the extension are still somewhat sketchy, it apparently does include language that will keep milk prices from rising. 

Some of the details that have emerged:

Income Tax:   Tax rates will permanently rise to Clinton-era levels for families with income above $450,000 and individuals above $400,000. All income below the threshold will permanently be taxed at Bush-era rates.

Estate Tax: Estates would be taxed at a top rate of 40 percent, with the first $5 million in value exempted for individual estates and $10 million for family estates. In 2012, such estates were subject to a top rate of 35 percent.

Capital gains, dividends: Taxes on capital gains and dividend income exceeding $400,000 for individuals and $450,000 for families would increase from 15 percent to 20 percent.

Farm Bill: A nine-month farm bill fix will be attached to the deal, and would avert the “dairy cliff”. 

The measure passed the Senate with strong bi-partisan support (89-8) and could be voted on in the House later today.