The Fiscal Cliff and the Dynamics of Income

March 15th, 2014
in econ_news

Econintersect: At the end of 2012:

  • the Bush tax cuts expired. Dividend income would no longer be taxed at the same rate of capital gains - but would return to be taxed at the rate of ordinary income;
  • the employee portion of capital gains would return to the tax rate of 6.2% (from the temporarily reduced rate of 4.2%);
  • and two Medicare surcharges were implemented on joint filers with incomes above $250,000.

How did companies and individuals respond to these tax increases?

Follow up:

[click on image to read this post]

Source: http://www.chicagofed.org/digital_assets/publications/chicago_fed_letter/2014/cflapril2014_321.pdf















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