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.
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Obama gets extension for the middle-class tax rates
Our Sources
The White House, Fact Sheet on the Framework Agreement on Middle Class Tax Cuts and Unemployment Insurance, Dec. 7, 2010
Thomas, HR 4583
The White House, Press Conference by the President, Dec. 7, 2010
U.S. Senate Finance Committee, S.A.4753: The Reid-McConnell Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010