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Angie Drobnic Holan
By Angie Drobnic Holan December 20, 2010
Back to Extend the Bush tax cuts for lower incomes

Obama gets extension for the middle-class tax rates

In the debate over taxes during 2010, both parties agreed that the tax rates for the middle class should be continued. The tax rates, passed during President George W. Bush's administration, had an end-of-the-year expiration date and were set to go up in 2011.

Yet getting the tax rates continued proved surprisingly contentious. President Barack Obama said Republicans were holding tax cuts for the middle-class "hostage" to get tax rates for higher earners continued. So Obama agreed to continue the current tax rates for everyone, regardless of income. Additionally, Obama won another year of unemployment benefits for workers who qualified, and he won a one-year reduction of Social Security taxes that would put 2 percent of pay back into workers' paychecks.

Here, we're rating Obama's promise to continue the same tax rates for couples who make less than $250,000 and individuals who make less than $200,000. The legislation Obama signed on Dec. 17, 2010, continues the current rates for everyone for another two years. We'll check back on this promise in 2012, but for now we're rating this Promise Kept.