Senior Senate Republican aides tell NRO that the tax side of the fiscal-cliff deal has been finalized. Here’s a sketch of the framework:
— Current tax rates would be permanently extended for singles making $400,000 or below, and permanently extended for couples making $450,000 or below
— For singles, capital gains and dividends of $400,000 or below would be permanently taxed at 15 percent; capital gains and dividends above $400,000 would be permanently taxed at 20 percent
— For couples, capital gains and dividends of $450,000 or below would be permanently taxed at 15 percent; capital gains and dividends above $450,000 would be taxed at 20 percent
— The Alternative Minimum Tax would be permanently patched
— Estates over $5 million would be taxed at 40 percent, and that tax rate would be permanently extended