When the clock strikes midnight on December 31, 2012, many Americans will celebrate the arrival of a new year with streamers, confetti and a round of “Auld Lang Syne.” But when they wake up the next morning, January 1, 2013, they may not be as excited to learn that their federal taxes have increased.
As things stand now, many Americans are facing a tax increase beginning in 2013. This pending tax increase has been referred to as “the 2013 fiscal cliff” and “Taxmageddon” by some pundits, who are concerned that it could threaten the fragile economic recovery.
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