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The Impact of the New Year’s Resolution and the ‘Fiscal Cliff’

In the interest of avoiding further damaging an already turbulent economy, H.R. 8 (the American Taxpayer Relief Act of 2012) was passed by the Senate in
the early hours of New Year’s Day and by the House of Representatives later the same day. The resolution avoided reverting to higher tax rates for most
Americans, but did indeed raise taxes on the country’s highest earners. Additionally, the bill postponed automatic spending cuts for two months.

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