Guide to the US budget bill

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The Independent Online
NEW TAXES

An increase in the top personal tax rate to 36 per cent from 31 per cent for individuals whose taxable income is above dollars 115,000 a year and couples above dollars 140,000. The rate will rise to 39 per cent for income above dollars 250,000.

A 4.3 cent-per-gallon increase in the tax on transport fuels, including a jump in petrol tax from 14.1 cents to 18.4 cents a gallon.

An increase in the top corporate tax rate to 35 per cent from the current level of 34 per cent. The new rate affects taxable income above dollars 10m, raising dollars 16.4bn.

An increase to 85 per cent from the current level of 50 per cent in the amount of Social Security payments subject to taxation for some recipients. The increase will affect individuals with incomes higher than dollars 34,000 and couples with incomes above dollars 44,000.

dollars 56bn in Medicare cuts and dollars 7bn off Medicaid over five years.

A provision to prohibit publicly held companies from tax deductions for executive compensation in excess of dollars 1 million for some of their top employees.

NEW SPENDING

A dollars 21bn expansion in the Earned Income Tax Credit, which is for the working poor.

A dollars 3.5bn programme of tax breaks and new spending in depressed urban areas.

A new dollars 585m programme for childhood vaccinations for the poor.

An increase of dollars 2.5bn in the federal Food Stamps programme, which provides nutrition assistance to the poor.

Permanent extension of a tax credit for helping fund low income housing, at a cost of dollars 4.8bn.

A provision allowing businesses to write-off so-called 'intangibles', including computer software, over 15 years.

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