The main impact of the Fiscal Cliff was averted on January 1, 2013, by a last minute agreement by the Obama administration with the Senate and House of Representatives. Among other things, the American Taxpayer Relief Act of 2012 permanently extended most of the 2001 and 2003 Bush tax cuts for low- and middle-income taxpayers, which were set to expire. This article outlines exactly what was passed in the American Taxpayer Relief Act of 2012.