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How the "fiscal cliff" will affect you.
December 17, 2012

Americans are right on the edge of toppling over the so-called "fiscal cliff"  -- the financial precipice that lawmakers must negotiate as various tax increases and spending cuts are scheduled to automatically go into effect unless Congress takes action before Dec. 31.

Below are some key provisions that, without further legislative action, will change dramatically next year.

NOTE: The Payroll tax rate discussed is the FICA withholding amount, commonly called Social Security Tax that an individual pays. The employer's rate remains at 6.2%. For two years, Congress has had you paying 2% less into the already at-risk Social Security system. Ultimately this may decrease the Social Security benefit amount you will receive when you retire.

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All information provided is general in nature and intended to create awareness, not to address the specific circumstances or concerns of any individual or entity. Although we try to provide correct and timely information, we cannot guarantee the accuracy of any information or that such information will continue to be accurate in the future due to the changing nature of the tax laws. Before acting on any of the information provided here, you should consult with a professional advisor who knows all of the unique facts and circumstances pertinent to your particular situation.