■ Income taxes: Income taxes would rise to 39.6 percent from 35 percent on income more than $400,000 for single people and $450,000 for couples. Above those income levels, dividends and capital gains tax rates would also rise, to 20 percent from 15 percent. The deal would reinstate provisions, ended by the Bush tax cuts of 2001, that phase out personal exemptions and deductions for the affluent. Those phaseouts, under the agreement, would begin at $250,000 for single people and $300,000 for couples.
■ Inheritance tax: The estate tax would also rise, but considerably less than Democrats had wanted. The value of estates more than $5 million would be taxed at 40 percent, up from the current 35 percent. Democrats had wanted a 45 percent rate on inheritances larger than $3.5 million. The new rates on income, investment, and inheritances would be permanent.
■ Working poor: The deal includes a five-year extension of tax cuts provided in the 2009 stimulus law for middle-class and working-poor taxpayers. Those include a child credit for workers who do not earn enough to pay income taxes, an expanded earned income credit, and a refundable credit for tuition.
■ Other taxes: Credits for tuition and expanded earned income credit would be maintained. Protection from the Alternative Minimum Tax would remain. For businesses, tax credit for research and development would be extended.
■ Health care: The deal would stave off sharp cuts for one year to health care providers who treat Medicare patients. That cost, about $30 billion, would be paid for with cuts to other health care programs.
■ Unemployment: Democrats secured a full year’s extension of long-term jobless insurance without strings attached, a $30 billion cost.
■ What is not included: Payroll tax rates, which will rise back to 6 percent, from 4 percent; mandated spending cuts, which would now be delayed for two months; a resolution on raising the debt limit.
New York Times