Bill > S3393

This bill, the Middle Class Tax Cut Act, extends several tax provisions through 2013 for individuals earning $200,000 or less (or $250,000 for married couples filing jointly), including the tax rate reductions and other benefits from the Economic Growth and Tax Relief Reconciliation Act of 2001 and the reduced tax rates on dividends and capital gains from the Jobs and Growth Tax Relief Reconciliation Act of 2003; it also increases income tax rates and phases out personal exemptions and itemized deductions for higher-income taxpayers. Additionally, the bill extends through 2013 the increased American Opportunity tax credit, the enhanced refundable portion of the child tax credit, a higher earned income tax credit percentage for families with three or more children, the disregard of tax refunds when determining eligibility for federal programs, and the ability for businesses to expense depreciable assets. For estate taxes, it establishes a $3.5 million exclusion and a maximum 45% tax rate, and it temporarily extends for one year the increased exemption amount for the Alternative Minimum Tax (AMT) and the ability to offset AMT with certain nonrefundable personal tax credits, while also stipulating that the budgetary effects of this Act will not be considered under the Statutory Pay-As-You-Go Act of 2010, which is a law designed to ensure that new spending or tax cuts are offset by other spending cuts or tax increases.