Photo Source: Rex Features via AP Images
The short version. The nation’s collective cliffhanger is resolved (sort of). What do you need to know? Here’s a super-short primer, courtesy of Reuters.
In addition to a higher tax rate on family incomes of $450,000-plus (to 39.6%, up from 35%), the payroll tax cut is being rolled back, so you’ll see 2% more taken out of each check on the first $113,700 of income, just like old times.
On the upside the Cliff deal will extend the child tax credit, unemployment benefits, and it includes a permanent patch for the “wicked witch of the tax code”: the alternative minimum tax (AMT). If everyone signs off, the AMT will be indexed for inflation, making it less likely that middle-class earners will get hit by it. (Reuters, ABC)
She was a hero. Never heard of Beate Sirota Gordon? Neither had we, until we read the obituary of her extraordinary life today. At 22, Gordon was part of a team that helped rebuild Japan after World War II—and she wrote part of Japan’s constitution that created rights for women that exist to this day. An incredible story. (NYT)