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March 2013 » Implications of the 2013 ‘Fiscal...
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Yi Ren, PhD, and Dong Xiao, PhD
The legislative deal to avoid the looming ‘fiscal cliff’ has been sealed with President Obama's signature. The main impact of this agreement is detailed in the American Taxpayer Relief Act of 2012 (ATRA). In essence, this legislation aims to increase taxes on wealthy Americans and to protect middle-class families from higher taxes. Although the most publicized aspect of the deal was the increase in marginal tax rates for taxpayers with income above $400,000 (for a single filer) or $450,000 (for a married couple filing jointly), ATRA actually has more of an effect on middle- and low-income taxpayers.
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