WASHINGTON Dec 27 Sharp U.S. tax increases and
government spending cuts will take effect in January as part of
the "fiscal cliff" unless Congress and President Barack Obama
can agree soon on a deal to avoid it.
With few signs at the moment of such an agreement emerging,
here are some key dates ahead:
* Dec. 27. Senate reconvenes after holiday break. Spends day
debating measures unrelated to the fiscal cliff.
* Dec. 28. Senate expected to continue debating measures
unrelated to the fiscal cliff.
* Dec. 30. House of Representatives expected to reconvene.
* Jan. 1. Expiration of low rates for individual ordinary
income taxes and investment income taxes, including capital
gains and dividends. The low rates were enacted under Republican
President George W. Bush on a "temporary" basis and extended in
2010 under Obama.
Expiration of Obama payroll tax cut of 2011 and 2012.
Return of caps on personal exemptions and itemized
deductions for upper-income taxpayers. They were ended by Bush.
Deadline for dealing with "tax extenders" such as the
corporate research and development tax credit. These and other
items must be extended by year-end to be claimed in 2013.
Deadline for fix to the alternative minimum tax. Without
action, the AMT will begin hitting millions more Americans.
New taxes take effect under Obama's healthcare overhaul. One
is a 0.9-percentage point increase in wage income tax for
individuals earning more than $200,000 a year. The other is a
3.8 percent Medicare tax on investment income above the same
level. These take effect regardless of the cliff outcome.
Estate tax on assets left to heirs will rise to 55 percent,
after excluding the first $1 million of value, from 35 percent
after an exemption level of $5 million.
* Jan. 2. Without congressional action to waive or postpone
them, spending cuts of $1.2 trillion over 10 years begin. Known
as "sequestration," these were put in place in 2011 after a
congressional "super committee" failed to devise a fiscal plan.
* Jan. 3. A new Congress is scheduled to convene.
* Jan. 7-11. Congress scheduled to be out of session.
* Jan. 14. Congress scheduled to reconvene.
* Jan. 20. Presidential inauguration day. A public ceremony
is planned for the following day.
* February. White House releases annual proposed budget.
Treasury exhausts "extraordinary measures" to postpone the
arrival of the U.S. debt ceiling. Without action to raise it,
the United States faces possible credit rating downgrade again.
* March. Funding of federal government expires with the
expiration of a continuing resolution.