President Barack Obama signed the American Taxpayer Relief Act of 2012, often called the “fiscal cliff” agreement, on January 2, 2013.
With a new year comes a new beginning. While New Year’s Day is typically viewed as a chance to start fresh and make changes in our personal lives, for many people New Year’s Day in 2013 took a different tone.
On New Year’s Day, Congress and President Obama reached a deal in the American Taxpayer Relief Act of 2012 (2012 Tax Act). The 2012 Tax Act provides the first “permanent” estate, gift, and generation skipping transfer (GST) tax provisions since 2001.
The American Taxpayer Relief Act of 2012 was signed into law on January 2nd. Although the recent headlines suggest the “fiscal cliff” was averted with this legislation, for most business owners, dealing with significantly higher tax rates is now a reality.
Buried in the American Taxpayer Relief Act of 2012 (“ATRA”), the fiscal cliff legislation President Obama signed into law on January 2, 2013, is a seven-line provision amending the Social Security Act by extending the so-called “statute of limitations” for recovering Medicare overpayments.
On January 1st, 2013, the United States Senate handed the government a parachute just as it was falling over the cliff. Working into the wee hours of the morning, Senate Republicans and Democrats came to an agreement to raise taxes on individuals making more than $400,000 and married couples earning over $450,000. Upon passing the American Taxpayer Relief Act of 2012 (H.R. 8) by a vote of 89-8, the Senate handed the keys over to the House. After hours of tense negotiations and closed-door meetings, enough House Republicans joined Democrats to pass H.R. 8, 257-167.
LXBN TV: The Basics of the Fiscal Cliff Deal & Why the Lack of Sunset Provisions is Important—Michael Walker
It wasn’t easy, but it’s done. After all the bickering, posturing and pontificating, Republicans and Democrats in Congress were finally able to reach a deal they were able to agree on—or at least stomach. That deal: the American Taxpayer Relief Act of 2012, which neither the Senate nor House actually passed in 2012. Joining me to break it down is Portland attorney Michael Walker of Samuels Yoelin Kantor and the Wealth Law Blog.
As was widely expected over the month of December, the Obama Administration and Congress scrambled in the late hours of 2012 and on New Year’s Day devising a legislative package to prevent the United States from going over the “Fiscal Cliff”
Whew! An exhausted nation finally witnessed an agreement to avoid the fiscal cliff. As reported in From NASCAR to rum, 10 weird parts of the ‘fiscal cliff’ deal, we, or I should say special interests, got even more than we thought.
On January 1, 2013, Congress passed H.R. 8, the American Taxpayer Relief Act of 2012 to avert the immediate tax increase and spending cuts (i.e., the so-called “fiscal cliff”) that was otherwise scheduled to take effect January 1, 2013.