What does the latest “fiscal cliff” legislation do for businesses, workers and individual taxpayers?

According to Bloomberg, it averts an automatic tax increase for most workers, extends unemployment benefits and delays automatic spending cuts for two months. It also let a 2 percent payroll tax cut expire, which will raise taxes on 77 percent of U.S. households.

Middle class:  A person earning $50,000 and who is paid twice a month will lose $41.67 a paycheck, according to Bloomberg 

High earners: If you make more than $506,210 a year, you’ll face higher rates on income, capital gains, dividends and estates. Overall, those top earners will pay an average of $73,633 more in taxes, the Tax Policy Center said.

If your income is more than $400,000 ($450,000 for two-earner households), rates oncapital gains and dividends will increase to 20 percent from 15 percent. But the true rate will be 23.8 percent once a 3.8 percent tax created under the Patient Protection and Affordable Care Act is included. That tax, which takes effect today, is one of the measures Congress adopted to pay for the health-care overhaul.

Automatic spending cuts:  The $110 billion in automatic spending cuts will be delayed for  two months, which means the measure doesn’t do anything about reducing the national debt, setting up another bruising battle over this, according toMSN Money. 

Deductions for higher earners:  Limits on personal exemptions and itemized deductions for top earners will return for individuals starting at $250,000 and married couples starting at $300,000.

Estate tax: Estates will receive an exemption of more than $5 million and a 40 percent top rate, splitting the difference on rates between Republicans and Democrats. The exemption will be indexed for inflation. 

Reaction: Wall Street rallied this morning, according to MSN Money. 

What’s  ahead: Three more “cliffs” remain to be resolved, according CNN Money. 
Late February or early March: Congress will have to raise the country’s debt ceiling to pay its bills.
Early March: The delay of the so-called sequester – or automatic government spending cuts of 8 to 10 percent – will expire.
March 27: Congress will have to pass a continuing budget resolution to keep the government from shutting down.