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What Will the Fiscal Cliff Agreement Mean for Your Finances?

Late on New Year’s Day the Congress agreed and passed a bill that would maintain Bush-era income tax reductions for 99% of Americans. However, the bill did not extend the temporary reduction in payroll taxes for Social Security and Medicare [FICA] enacted two years ago to stimulate the economy. So a majority of Americans will pay an increase up to these restored rates. Although all implications of the bill for ordinary taxpayers is not yet clear, the following information and analysis from a variety of sources may provide you with a clearer picture.

Summaries of Key Provisions of the Fiscal Agreement

White House Fact Sheet press release

CNN “Your taxes under the fiscal cliff deal”

NPR "Inside The Fiscal Cliff Budget Compromise Bill: Tax Cuts and Tax Hikes"

Read the bill yourself—all 154 pages. From the Government Printing Office

What Selected National Press Are Saying

New York Times “Piecing Together a Tax Plan’s Effect” by Ron Lieber

Forbes “Secrets of the Fiscal Cliff Deal” by Tony Nitti

Huffington Post “How the Fiscal Cliff Deal Impacts Nonprofits, Donors” by Paul Clolery, VP and Editorial Director, NPT [Nonprofit Times] Publishing Group