President Obama signs the American Tax Payer Relief Act of 2012 making permanent the Bush-Obama tax cuts for earners making below the income threshold of $400,000 (individuals) and $450,000 (families). While not the large grand bargain that would have established comprehensive tax reform and changes to dramatic sequester spending cuts, the legislation averts marginal tax rates being raised on 98% of the taxpayers. Most importantly for the nonprofit arts community, the last minute bargain did not include caps on the value of itemized deductions which possibly could have had a direct impact on charitable giving to the arts. Reinstatement of the Personal Exemption Phaseout (PEP) and Pease provision (which lowers the value of most itemized deductions for yearly earners in the $250,000 individual, $300,000 family income thresholds) was also included in the compromise. A series of budget maneuvers will delay the sequester for two months as leaders continue to work on issues surrounding increasing the debt limit, tax reform and long term spending decisions.