Some aspects of the fiscal cliff deal are well-known – such as rising tax rates on the rich. But, actually, everyone will be paying more taxes. Here's a look at the deal's details.
Your taxes are probably going up, but not as much as they would have without a "fiscal cliff" deal.
The welcome news for personal pocketbooks is that most Americans will see no change in their income-tax rates.
But the amount of taxes paid will still rise, for two major reasons: First, workers will owe 2 percent more of their paychecks to the government in 2013 because Congress is allowing a temporary payroll-tax cut to expire. Second, tax rates are rising for households that earn more than $450,000.
The goal of the legislation was to reduce federal deficits while also avoiding the so-called "cliff" of big tax hikes and federal spending cuts that had been scheduled for Jan. 1. If Congress took no action, the resulting shock to consumer pocketbooks could have thrown the US into recession, economists warned.
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