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Briefing

Fiscal deal will cost you: 8 tax changes

Here are eight tax changes under the 'fiscal cliff' deal that may hit your pocketbook.

- Staff writer

In this 2007 file photo, Warren Buffett, chairman and CEO of Berkshire Hathaway, testifies before a Senate Finance Committee hearing about widening US income disparity and endorses an estate tax as a check on wealth accumulation. (Jason Reed/Reuters/File)

3. Estate taxes go up

The tax rate on estate taxes will rise to 40 percent, up from 35 percent in 2012. The first $5 million of an individual's estate will be exempted ($10 million for family estates), the same as in 2012. The deal averts the "fiscal cliff" provisions, which will have lowered the exemption to $1 million and increased the tax rate to 55 percent. And the exemption levels would be indexed to inflation, so gradually even bigger estates would avoid the tax. 


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