Tax legislation—Congress addresses fiscal cliff
Congress and President Obama reached an agreement to temporarily avert the so-called "fiscal cliff." The American Taxpayer Relief Act of 2012 (the Act) calls for an increase of the top tax bracket to 39.6 percent for taxpayers with income over $450,000 (married, filing joint returns). For other taxpayers, ordinary income rates remain unaffected. The Act also addresses the capital gains rate, tax rates for dividends, and numerous other tax provisions.