The budget agreement that averted the "fiscal cliff" preserves Bush-era tax cuts for many middle-class Americans, but other taxes will go up this year. A temporary reduction in employees' contributions to Social Security will end, and the average household will pay an extra $1,000. The income tax rate of individuals making more than $400,000 a year and of couples whose combined income is greater than $450,000 will rise to 39.6% from 35%.

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