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As everyone is aware, last month the House at the eleventh hour passed the tax bill. The tax bill will increase the tax brackets to 39.6% for married-joint couples making $450K and greater and for single individuals the 39.6% would kick in at $400K. The top Qualified dividend and capital gain rates will increase to 20%.
What the tax bill did not accomplish was to continue with the temporary payroll tax cut for employees which was implemented in 2011. The social security tax rate will increase by 2% points which will bring the rate back to 6.2%.
The tax bill contains tax benefits such as the permanent patch to the alternative minimum tax and extension of the 50% bonus depreciation for businesses. For more information please see our article The Fiscal Cliff Deal: How Will It Affect Me?