Here's what the $490 billion deficit reduction deal will cost you over the next five years:
- Gasoline taxes: Effective Dec. 1, the 9-cents-a-gallon federal gasoline tax will rise 5 cents, the first increase since 1982.- "Sin" taxes: The 16-cents a six-pack tax on beer will double and the 3-cent tax on wine will rise to 21 cents, the first hike for both since 1951. The tax on hard liquor, last increased in 1985, will go up $1 to $13.50 a proof-gallon, while the 16-cents-a-pack tax on cigarettes, which was doubled in 1983, will be boosted another 8 cents.
- Airline taxes: The 8 percent federal airline ticket tax will go up to 10 percent. In addition, airports will be able to levy a new $3 local-option tax up to $12 a round trip.
- Moving costs: The current writeoff for moving 35 miles or more for employment reasons will be raised to 100 miles.
- Recreational boaters: A new Coast Guard fee will be assessed on pleasure boats according to length up to a maximum $100 a year for boats that are 40 feet or longer.
- Medicare: The 33 million elderly and disabled who subscribe to the Medicare program's optional insurance for doctor bills and out-patient services will pay a $100 deductible before coverage kicks in. The current $75 deductible was set in 1982.
Monthly premiums for optional doctor bill and outpatient coverage will continue to recover 25 percent of program costs, with the remaining 75 percent subsidized by general revenues. The premium, now $28.60 a month, will rise to $29.90 in 1991 and is projected to go to $40.30 by 1995 under this formula.
- Medicare payroll taxes: Wages subject to the 2.9 percent Medicare payroll tax, which is split between bosses and workers, will go from $51,300 to $125,000.
- Luxury taxes: A new 10 percent tax will apply to sales of new cars with sticker prices above $30,000, furs and jewelry worth more than $10, 000, boats above $100,000, and airplanes that sell for more than $250,000 that aren't used for business purposes 80 percent of the time.
- Upper income taxes: There will be three income tax rates - 15 percent, 28 percent and 31 percent.
The top 31 percent rate is an increase for the top 600,000 taxpayers, who now pay a 28 percent flat rate and would be subject to a new 31 percent flat rate. In addition, the alternate minimum tax - payed by wealthy taxpayers with a lot of writeoffs - goes up from 21 percent to 24 percent.
The rate change would represent a cut in the top marginal rate paid by people now in the so-called "bubble," an anomaly of the 1986 tax overhaul that has had a family of four with taxable income between $78, 400 and $208,690 paying an effective marginal rate of 33 percent on their last dollars.
- Personal exemption: To ensure taxpayers now in the "bubble" don't get a tax cut because their top marginal rate is being lowered to 31 percent, single filers with adjusted gross income of $100,000 and $225,000 and couples who file jointly with incomes between $150,000 and $275, 000 would lose part of their personal exemptions. At the top of the range, the personal exemption is phased out entirely.
- Itemized deductions: These are being trimmed for taxpayers with adjusted gross incomes over $100,000 by disallowing deductions equal to 3 percent of a taxpayer's income above the $100,000 threshold. Thus, a taxpayer with $150,000 in adjusted gross income would lose $1,500 in deductions, or $50,000 multiplied by 3 percent.
- Capital gains, the profits on sales of stocks, bonds and other investments, will be taxed at a maximum rate of 28 percent, down from a maximum of 33 percent currently.