The legislation passed by Congress in the first hours of 2012 affected more than just the farm bill, addressing the estate tax, capital gains and payroll taxes.
In addressing the fiscal cliff, Congress set the estate tax at 40% on estates valued at more than $5 million, up from the 35% rate in effect for 2012. Without action, the estate tax threatened to revert back to a $1 million exemption with a 55% top tax rate.
The bill permanently sets the capital gains tax rate at 20%, higher than the previous 15%, for those individuals making more than $400,000 and couples making more than $450,000. It also reauthorizes several tax extenders, including the bonus 50% bonus depreciation.
With the expiring payroll tax cut, the employee FICA payroll tax on employment wages will revert back to 6.2% from 4.2%.
to view the complete bill and its provisions.