High earners face major tax increase

The fiscal cliff bill approved by Congress would bring the first major tax increase on high earners in 20 years, The Wall Street Journal reported.

Income tax rates will stay the same for most Americans, but taxpayers with more than $400,000 in taxable income or couples with $450,000 would see the top marginal tax rate rise to 39.6 percent in 2013 from 35 percent in 2012. For income earned below that level, the 2012 rates would be permanently extended. Taxes on long-term capital gains, dividends…