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Business News at 5:30 p.m.
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NEW YORK â¿¿ The fiscal cliff compromise, for all its chaos, controversy and unresolved questions, was enough to send the stock market shooting higher, the first trading day of the new year. The Dow Jones industrial average careened more than 300 points higher, its biggest gain since December 2011, just 5 percent below its record high close reached in October 2007. The Russell 2000, an index that tracks smaller companies, shot up to the highest close in its history. By Christina Rexrode.
FISCAL CLIFF-TAX IMPACT
WASHINGTON â¿¿ While the tax package that Congress passed New Year's Day will protect 99 percent of Americans from an income tax increase, most of them will still end up paying more federal taxes in 2013. That's because the legislation did nothing to prevent a temporary reduction in the Social Security payroll tax from expiring. In 2012, that 2-percentage-point cut in the payroll tax was worth about $1,000 to a worker making $50,000 a year. By Stephen Ohlemacher.
â¿¿ FISCAL CLIFF-TAX IMPACT-GLANCE â¿¿ How tax increases will affect households at different income levels.
â¿¿ FISCAL CLIFF â¿¿ Congress approves a deal that averts a prolonged tumble off the fiscal cliff, but lays the groundwork for future battles between Republicans and Democrats over federal spending and debt.