The fiscal cliff agreement reached late on January 1, 2013, preserves lower income tax rates for most Americans, while increasing the tax burden on upper-income taxpayers. A permanent fix to the alternative minimum tax scheme will keep millions of middle-income taxpayers from incurring AMT liability. Numerous other tax breaks, ranging from energy credits to marriage-penalty relief, were also salvaged. However, everyone is likely to feel the pain of increased payroll taxes as the two-percent reduction on the employee-share of FICA lapsed at midnight on December 31, 2012. Part One of our two-part series focuses on those provisions that will affect individual taxpayers. Part Two focuses on provisions related to businesses.