Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010

{{Short description|2010 Tax Relief Act}} {{Use American English|date=June 2025}} {{Infobox U.S. legislation | name = Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 | fullname = An act to amend the Internal Revenue Code of 1986 to extend the funding and expenditure authority of the Airport and Airway Trust Fund, to amend title 49, United States Code, to extend authorizations for the airport improvement program, and for other purposes. | acronym = | enacted by = 111th | effective date = (various dates for different provisions) | public law url = | cite public law = Public Law 111-312 | cite statutes at large = 124 Stat. 3296 | acts amended = [[Economic Growth and Tax Relief Reconciliation Act of 2001]] [[Jobs and Growth Tax Relief Reconciliation Act of 2003]] [[American Recovery and Reinvestment Act of 2009]] [[Energy Policy Act of 2005]] [[Energy Policy Act of 1992]] [[Public Utility Regulatory Policies Act]] of 1978 [[Public Utility Holding Company Act of 1935]] | title amended = [[Title 16 of the United States Code|16 U.S.C.: Conservation]] [[Title 42 of the United States Code|42 U.S.C.: Public Health and Social Welfare]] | sections created = | sections amended = {{Usc-title-chap|16|46}} § 2601 et seq. {{Usc-title-chap|42|134}} § 13201 et seq. {{Usc-title-chap|42|149}} § 15801 et seq. | leghisturl = | introducedin = [[United States House of Representatives|House]] | introducedbill = H.R. 4853 | introducedby = [[James Oberstar]] ([[Democratic Party (United States)|D]]–[[Minnesota|MN]]) | introduceddate = March 16, 2010 (in unrelated form); subsequently introduced December 1, 2010 (in this form)<ref>Technically, H.R. 4853 was first introduced in March 2010 as the Federal Aviation Administration Extension Act of 2010. It was re-purposed on December 1, 2010, to be the vehicle to address the expiring tax rates issue. See [http://thomas.loc.gov/cgi-bin/bdquery/z?d111:HR04853:@@@S full history in Thomas] {{Webarchive|url=https://web.archive.org/web/20101205021250/http://thomas.loc.gov/cgi-bin/bdquery/z?d111:HR04853:@@@S |date=2010-12-05 }}.</ref> | committees = | passedbody1 = [[United States Senate|Senate]] | passeddate1 = December 15, 2010 | passedvote1 = [https://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=111&session=2&vote=00276 81–19] | passedbody2 = [[United States House of Representatives|House]] | passeddate2 = December 16, 2010 | passedvote2 = [http://clerk.house.gov/evs/2010/roll647.xml 277–148] | conferencedate = | passedbody3 = | passeddate3 = | passedvote3 = | agreedbody3 =  | agreeddate3 =  | agreedvote3 =  | agreedbody4 =  | agreeddate4 =  | agreedvote4 =  | passedbody4 = | passeddate4 = | passedvote4 = | signedpresident = [[Barack Obama]] | signeddate = December 17, 2010 | amendments = | unsignedpresident = | vetoedpresident = }} The '''Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010''' ({{USStatute|111|312|124|3296|2010|12|17|HR|4853}}), also known as the '''2010 Tax Relief Act''', was passed by the [[United States Congress]] on December 16, 2010, and signed into law by [[President of the United States|President]] [[Barack Obama]] on December 17, 2010.<ref name="wh-taxcut">{{cite web | url=https://obamawhitehouse.archives.gov/taxcut | work=[[whitehouse.gov]] | title=Tax Cuts, Unemployment Insurance and Jobs | via=[[NARA|National Archives]] | access-date=December 17, 2010 }}</ref>

The Act centers on a temporary, two-year reprieve from the [[sunset provisions]] of the [[Economic Growth and Tax Relief Reconciliation Act of 2001]] (EGTRRA) and the [[Jobs and Growth Tax Relief Reconciliation Act of 2003]] (JGTRRA), together known as the "[[Bush tax cuts]]." Income taxes would have returned to [[Clinton administration]]-era rates in 2011 had Congress not passed this law. The Act also extends some provisions from the [[American Recovery and Reinvestment Act of 2009]] (ARRA or 'the Stimulus'). The act also includes several other tax- and economy-related measures intended to have a new stimulatory effect, mostly notably an extension of unemployment benefits and a one-year reduction in the [[Federal Insurance Contributions Act tax|FICA payroll tax]], as part of a compromise agreement between Obama and Congressional Republicans. The overall monetary impact of the measure has been placed at $858 billion.<ref name="cnn-signs"/>

The law was also known, during its earlier formulation in the House of Representatives, as the '''Middle Class Tax Relief Act of 2010'''. The package has been referred to as the "Obama-GOP tax deal" as well as the "Obama tax cuts".<ref>Bosh, Steve. [http://www.kusi.com/story/13706387/bosh-pkg "Bush tax cuts are now the Obama tax cuts"] {{Webarchive|url=https://web.archive.org/web/20170929092632/http://www.kusi.com/story/13706387/bosh-pkg |date=2017-09-29 }}, [[KUSI-TV]], December 17, 2010</ref><ref>Read, Max. [http://gawker.com/5714403/how-will-americans-spend-the-obama-tax-cuts "How Will Americans Spend the Obama Tax Cuts?"], [[Gawker]], December 17, 2010.</ref><ref name="tpmdc-vote"/>

==Provisions== Key aspects of the law include:

* Extending the EGTRRA 2001 income tax rates for two years. Associated changes in itemized deduction and personal exemption rules are also continued for the same period. The total negative revenue impact of this was estimated at $186 billion.<ref name="at-sum">{{cite news | url= http://www.accountingtoday.com/news/Tax-Cut-Extension-Bill-Wends-Way-White-House-56664-1.html | title=Tax Cut Extension Bill Wends Its Way to White House | magazine=[[Accounting Today]] | date=December 17, 2010 | access-date=December 17, 2010}}</ref> * Extending the EGTRRA 2001 and JGTRRA 2003 dividends and capital gains rates for two years. The total negative revenue impact of this was estimated at $53 billion.<ref name="at-sum"/> * Patching the [[alternative minimum tax]] to ensure an additional 21 million households will not face a tax increase. This was done by increasing the exemption amount and making other targeted changes. The negative revenue impact of this measure was estimated at $136 billion.<ref name="at-sum"/> ** The above three measures are intended to provide relief to more than 100 million middle-class families and prevent an annual tax increase of over $2,000 for the typical family.<ref name="wh-tcb">{{cite web|url=https://obamawhitehouse.archives.gov/the-press-office/2010/12/07/fact-sheet-framework-agreement-middle-class-tax-cuts-and-unemployment-in |title=Fact Sheet on the Framework Agreement on Middle Class Tax Cuts and Unemployment Insurance | |date=December 7, 2010 |via=[[NARA|National Archives]] |work=[[whitehouse.gov]] |access-date=December 10, 2010}}</ref> * A 13-month [[Unemployment extension|extension of federal unemployment benefits]].<ref name="wh-taxcut"/><ref name="dupree1">{{cite news |last=Dupree |first=Jamie |url=http://blogs.ajc.com/jamie-dupree-washington-insider/2010/12/09/summary-of-tax-deal/ |title=Tax Cuts Compromise Package Summary |newspaper=[[The Atlanta Journal-Constitution]] |date=December 9, 2010 |access-date=December 10, 2010 |url-status=dead |archive-url=https://web.archive.org/web/20101211225438/http://blogs.ajc.com/jamie-dupree-washington-insider/2010/12/09/summary-of-tax-deal/ |archive-date=December 11, 2010 }}</ref> The cost of this measure was estimated at $56 billion.<ref name="at-sum"/> * A temporary, one-year reduction in the [[Federal Insurance Contributions Act tax|FICA payroll tax]]. The normal employee rate of 6.2 percent is reduced to 4.2 percent. The rate for self-employed individuals is reduced from 12.4 percent to 10.4 percent.<ref name="dupree1"/> The negative revenue impact of this measure was estimated at $111 billion.<ref name="at-sum"/> * Extension of the [[Child Tax Credit]] refundability threshold established by EGTRRA, ARRA, and other measures.<ref name="at-sum"/> According to the White House, this would benefit 10.5 million lower-income families with 18 million children.<ref name="wh-taxcut"/> * Extension of ARRA's treatment of the [[Earned Income Tax Credit]] for two years.<ref name="at-sum"/> According to the White House, this would benefit 6.5 million working parents with 15 million children.<ref name="wh-taxcut"/> * Extension of ARRA's [[American opportunity tax credit]] for two years, including extension of income limits applied thereto.<ref name="at-sum"/> According to the White House, this would benefit more than 8 million students and their families.<ref name="wh-taxcut"/> ** The above three provisions, as well as some other similar ones, are intended to provide about $40 billion in tax relief for the hardest-hit families and students.<ref name="wh-tcb"/> * An extension of the [[Small Business Jobs and Credit Act of 2010]]'s "bonus depreciation" allowance through the end of 2011, and an increase in that amount from that act's 50 percent to a full 100 percent. For the year of 2012, it returns to 50 percent.<ref name="dupree1"/> The White House hopes the 100 percent expensing change will result in $50 billion in new investments, thus fueling job creation.<ref name="wh-taxcut"/> * An extension of [[Section 179 depreciation deduction]] maximum amounts and phase-out thresholds through 2012.<ref name="dupree1"/> ** Together, the above two business incentive measures were estimated to have a negative revenue impact of $21 billion.<ref name="at-sum"/> * Various business tax credits for alternative fuels, such as the [[Volumetric Ethanol Excise Tax Credit]], were also extended.<ref name=Biofuel>{{cite web |url=http://domesticfuel.com/2010/12/16/house-passes-tax-bill-with-biofuel-incentives/ |title=House Passes Tax Bill With Biofuel Incentives |date=December 16, 2010 |access-date=December 17, 2010 | publisher=Domesticfuel.com |author=Zimmerman, Cindy}}</ref> Others extended were credits for biodiesel and renewable diesel, refined coal, manufacture of energy-efficient homes, and properties featuring refueling for alternate vehicles.<ref name="dupree1"/> Also finding an extension was the popular domestic [[Nonbusiness Energy Property Tax Credit]], but with some limitations.<ref name="at-sum"/> * Estate tax adjustment. EGTRRA had gradually reduced [[Estate tax in the United States|estate tax rates]] until there was none in 2010. After sunsetting, the Clinton-era rate of 55 percent with a $1 million exclusion was due to return for 2011. The compromise package sets for two years a rate of 35 percent with an exclusion amount of $5 million. The negative revenue impact of this provision was estimated at $68 billion.<ref name="at-sum"/><ref>{{cite news|last=Scherer |first=Michael |url=https://swampland.time.com/2010/12/09/playing-the-tax-compromise-number-game/ |title=Playing The Tax Compromise Number Game |magazine=[[Time (magazine)|Time]] |date=December 9, 2010 |access-date=December 10, 2010}}</ref> * An extension of the 45G [[short-line railroad|short line]] tax credit, also known as the [[Railroad Track Maintenance Tax Credit]], through January 1, 2012. This credit had been in place since December 31, 2004 and allowed small railroad companies to deduct up to 50% of investments made in track repair and other qualifying infrastructure investments.<ref name=RR>{{cite web |url=http://www.aslrra.org/legislative/Action_Alert/ |title=45G Short Line Tax Credit Extended through 2011 |date=December 17, 2010 |access-date=December 26, 2010 |publisher=American Short Line and Regional Railroad Association |author=Schaick, Jeff V. |url-status=dead |archive-url=https://archive.today/20130414065529/http://www.aslrra.org/legislative/Action_Alert/ |archive-date=April 14, 2013 }}</ref>

==Legislative history== The years leading up to 2010 were filled with speculation and political debate about whether the [[Bush tax cuts]] should be extended, and if so, how. Rolling back the cuts for the wealthiest taxpayers had been one of the core promises of [[Barack Obama 2008 presidential campaign|Obama's 2008 presidential campaign]].<ref name="wapo-signs"/>

The issue came to a head during the [[Lame duck (politics)|lame duck]] session of the [[111th Congress]]. At the "[[Slurpee Summit]]" of November 30, 2010, President Obama appointed Treasury Secretary [[Tim Geithner]] and [[Office of Management and Budget]] chief [[Jack Lew]] to help Republicans and Democrats hammer out an agreement on extending the Bush tax cuts.<ref>{{cite news|title=Barack Obama fields tax-talk team|url=https://www.politico.com/story/2010/11/obama-fields-tax-talk-team-045734|author=Thrush, Glenn | author2=Lee, M.J. | author3=Brown, Carrie Budoff | newspaper=[[Politico]]|date=2010-11-30}}</ref> President Obama wanted to extend the tax cuts for taxpayers making less than $250,000 a year. Congressional Republicans agreed but also wanted to extend the tax cuts for those making over that amount.<ref>{{Cite web| last = Thoma| first = Mark| title = Senate GOP Pledges to Block All Bills Until Tax Cuts are Extended for All| publisher= Wall Street Pit| date = December 1, 2010| url = http://wallstreetpit.com/52023-senate-gop-pledges-to-block-all-bills-until-tax-cuts-are-extended-for-all | access-date =2010-12-20 }}</ref> Indeed, all 42 Republican senators joined in saying that, until the tax dispute was resolved, they would [[filibuster]] to prevent consideration of any other legislation, except for bills to fund the U.S. government.<ref>{{cite news |url=http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2010/11/30/national/w191950S50.DTL |archive-url=https://web.archive.org/web/20101203215330/http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2010/11/30/national/w191950S50.DTL |url-status=dead |archive-date=December 3, 2010 |title=Senate GOP letter calls for blocking most bills|first=David|last=Espo|agency=[[Associated Press]]|date=2010-12-01|work=[[San Francisco Chronicle]]}}</ref><ref>{{cite news|title=GOP Senators Pledge to Block All Democratic Legislation|url=http://slatest.slate.com/id/2276477/entry/2/|first=Meredith|last=Simons|magazine=[[Slate (magazine)|Slate]]|date=2010-12-01}}{{Dead link|date=June 2018 |bot=InternetArchiveBot |fix-attempted=no }}</ref><ref>{{Cite news| agency = [[Reuters]]| title = Senate Republicans block 9/11 health bill| publisher = [[KENW (TV)|KENW-TV]]| date = December 9, 2010| url = http://www.publicbroadcasting.net/kenw/news.newsmain/article/0/13/1735772/Top.Stories/Senate.Republicans.block.911.health.bill| access-date = 2010-12-19| archive-date = 2010-12-23| archive-url = https://web.archive.org/web/20101223121048/http://www.publicbroadcasting.net/kenw/news.newsmain/article/0/13/1735772/Top.Stories/Senate.Republicans.block.911.health.bill| url-status = dead}}</ref><ref>{{Cite news| last = Stirewalt| first = Chris| title = Today's Power Play: Republicans and Democrats Play Chicken With Lame Duck| publisher= [[Fox News Channel]]| date = December 1, 2010| url = http://politics.blogs.foxnews.com/2010/12/01/todays-power-play-republicans-and-democrats-play-chicken-lame-duck| access-date = 2010-12-20| archive-date = 2010-12-04| archive-url = https://web.archive.org/web/20101204115222/http://politics.blogs.foxnews.com/2010/12/01/todays-power-play-republicans-and-democrats-play-chicken-lame-duck| url-status = dead}}</ref>

The Middle Class Tax Relief Act of 2010 originated in the Democratic caucus within the House in early December 2010, and proposed to extend the Bush tax cuts for "middle incomes", meaning those earning under $250,000 for joint filers (and for singles, those earning under $200,000). It would restore the previous, higher rates for those "high income" people above that mark. A second proposal raised the dividing line to $1 million. Both proposals were able to pass in the House, but on December 4, 2010, both fell short in the Senate, getting only 53 votes and not the 60 needed for [[cloture]].<ref>{{cite news | url=http://news.firedoglake.com/2010/12/04/senate-gop-blocks-consideration-of-tax-plan-extending-rates-on-first-250k/ | title=Senate GOP Blocks Consideration of Tax Plan Extending Rates on First $250K and First $1M | author=Dayen, Favid | publisher=[[Firedoglake]] | date=December 2, 2010 | access-date=December 14, 2010 | archive-date=December 7, 2010 | archive-url=https://web.archive.org/web/20101207073721/http://news.firedoglake.com/2010/12/04/senate-gop-blocks-consideration-of-tax-plan-extending-rates-on-first-250k/ | url-status=dead }}</ref>

On December 6, 2010, President Obama announced that a compromise tax package proposal had been reached with the Republican congressional leadership. This centered around a temporary, two-year extension of the Bush tax cuts and included additional provisions designed to promote economic growth.<ref name="nyt-dem-sk">{{cite news |url=https://www.nytimes.com/2010/12/08/us/politics/08cong.html | title=Democrats Skeptical of Obama on New Tax Plan |author=Herszenhorn, David M. | author2=Stolberg, Sheryl Gay |newspaper=[[The New York Times]] |date=December 7, 2010 |access-date=December 8, 2010}}</ref> This proposal was identical to what became law.

In announcing the agreement, the president said, "I'm not willing to let working families across this country become collateral damage for political warfare here in Washington. And I'm not willing to let our economy slip backwards just as we're pulling ourselves out of this devastating recession. ... So, sympathetic as I am to those who prefer a fight over compromise, as much as the political wisdom may dictate fighting over solving problems, it would be the wrong thing to do. ... As for now, I believe this bipartisan plan is the right thing to do. It's the right thing to do for jobs. It's the right thing to do for the middle class. It is the right thing to do for business. And it's the right thing to do for our economy. It offers us an opportunity that we need to seize."<ref>{{cite web|author=Jesse Lee |url=https://obamawhitehouse.archives.gov/blog/2010/12/07/president-obama-tax-cuts-and-unemployment-extension-right-thing-do |title=President Obama on Tax Cuts and Unemployment Extension: "The Right Thing to Do" | The White House |date=2010-12-07 |via=[[NARA|National Archives]] |work=[[whitehouse.gov]] |access-date=2010-12-17}}</ref>

At a press conference the next day, Obama strongly defended the compromise agreement, after numerous congressional Democrats had strongly objected to aspects of it.<ref name="nyt-dem-sk"/> Obama labelled Republicans as "hostage takers" for forcing the situation, but also lashed out at liberal Democratic opponents of the deal as "sanctimonious" purists and compared it to their unhappiness over the lack of a [[public option]] in the [[Patient Protection and Affordable Care Act|health care reform legislation the previous year]].<ref name="wapo-signs"/><ref name="nyt-dem-sk"/> His stance led to immediate speculation among pundits that he was engaging in [[Triangulation (politics)|political triangulation]], akin to what President [[Bill Clinton]] had done following the 1994 [[Republican Revolution]].<ref name="wapo-signs"/><ref name="pol-tri">{{cite news | url=https://www.politico.com/blogs/ben-smith/2010/12/is-this-triangulation-031285 | title=Is this triangulation? | author=Smith, Ben | author-link=Ben Smith (journalist) | newspaper=[[Politico]] | date=December 8, 2010 | access-date=December 21, 2010}}</ref> The White House denied any such thing was happening.<ref name="pol-tri"/>

[[File:Bernie Sanders - full 2010-12-10 filibuster.webm|thumb|Sanders spoke for over eight hours in his December 2010 filibuster]]

Administration officials such as Vice President [[Joe Biden]] worked to convince the wary Democratic members of Congress to accept the plan, notwithstanding a continuation of lower rates for the highest-income taxpayers.<ref>{{cite news | url=https://www.nytimes.com/2010/12/08/us/politics/08deal.html | title=Biden and G.O.P. Leader Helped Hammer Out Bipartisan Tax Accord | author=Hulse, Carl | author2=Calmes, Jackie | newspaper=[[The New York Times]] | date=December 7, 2010 | access-date=December 8, 2010}}</ref> On December 10, Democratic-caucusing independent Senator [[Bernie Sanders]] made a filibuster-like stand against the compromise tax proposal, speaking for over eight hours and mocking the need for the wealthy to own multiple homes.<ref>Nick Wing, [http://www.huffingtonpost.com/2010/12/10/bernie-sanders-filibuster_n_795087.html "Bernie Sanders Filibuster: Senator Stalls Tax Cut Deal"], December 10, 2010, [[The Huffington Post]].</ref><ref>Memoli, Michael. [https://www.latimes.com/archives/la-xpm-2010-dec-10-la-pn-sanders-filibuster-20101211-story.html “Sen. Bernie Sanders ends filibuster”], ''[[Los Angeles Times]]'', December 10, 2010.</ref> Overall, the compromise proved widely popular in public opinion polls, with two-thirds support or more among self-described liberals, moderates, and conservatives, and it allowed Obama to portray himself as a consensus-builder not beholden to the liberal wing of his party.<ref name="wapo-signs"/><ref name="pol-passed"/> The bill was opposed by some of the most conservative members of the Republican Party as well as by talk radio hosts such as [[Rush Limbaugh]] and some groups in the [[Tea Party movement]].<ref name="pol-passed">{{cite news|url=https://www.politico.com/story/2010/12/tax-plan-clears-house-goes-to-obama-046531 |title=Tax cut plan clears House, goes to Barack Obama |author= Sherman, Jake |newspaper=[[Politico (newspaper)|Politico]] |date=December 13, 2010 |access-date=December 17, 2010}}</ref><ref>{{cite news|url=http://seattletimes.nwsource.com/html/nationworld/2013680580_tax15.html |title=Nation & World | Grumbling on extremes not likely to halt tax deal &#124 | newspaper=[[The Seattle Times]] |date=December 14, 2010 |access-date=December 17, 2010}}</ref> It was also opposed by several leading potential candidates for the [[Republican Party (United States) presidential primaries, 2012|Republican nomination in the 2012 presidential election]], including [[Sarah Palin]] and [[Mitt Romney]],<ref name="pol-passed"/> typically on the grounds that it did not make the Bush tax cuts permanent and that it would overall increase [[United States deficit|the national deficit]].<ref>{{cite news|author=the CNN Wire Staff |url=http://www.cnn.com/2010/POLITICS/12/17/tax.deal/index.html?hpt=T1 |title=Obama to sign tax deal Friday afternoon |publisher=[[CNN]] |date= December 18, 2010|access-date=December 17, 2010}}</ref>

The cut of the [[Federal Insurance Contributions Act tax|FICA payroll tax]] in the agreement was for one year only at a two percent reduction.<ref name="cnn-signs"/> This [[tax holiday]] was intended as an [[economic stimulus]] by Obama and the Democrats,<ref name="cnn-signs"/> with the value of boosting the disposable income of American families.<ref name="cnn-signs"/> It would not worsen the [[Social Security debate (United States)|Social Security program's financial strength]], as the shortfall would be made up from general revenues. Some Republicans thus criticized the idea for increasing the national deficit. Some Democrats were also wary of the notion, either because they thought the return to the normal rate one year hence would be characterized as a politically unpalatable "tax hike", or because they feared that reductions in the payroll tax would undermine the basic model that Social Security was based on.<ref>{{cite news | url=http://www.thesunchronicle.com/articles/2010/12/17/news/8559909.txt | title=House OKs tax cuts | author=Hand, Jim | newspaper=[[The Sun Chronicle]] | date=December 17, 2010}}</ref><ref>{{cite news | url=https://www.sfgate.com/politics/article/House-passes-Obama-s-huge-tax-cut-bill-2453144.php | title=House passes Obama's huge tax-cut bill | author=Lochhead, Carolyn | newspaper=[[San Francisco Chronicle]] | date=December 17, 2010}}</ref>

[[Image:Obama signs Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.jpg|thumb|left|President Obama signs the law into effect, on December 17, 2010, as members of Congress and others look on.]] On December 15, the Senate passed the compromise package with an 81–19 vote, with large majorities of both Democrats and Republicans supporting it.<ref>{{cite news|last=Herszenhorn |first=David M. |url=http://seattletimes.nwsource.com/html/politics/2013690449_taxes16.html |title=Politics | Senate OKs tax bill; House to vote Thursday | | newspaper=[[The Seattle Times]] |date=December 15, 2010 |access-date=December 17, 2010}}</ref> Near midnight of December 16, the House passed it 277–148, with it getting only a modest majority among Democrats and a large majority among Republicans (of the 148 votes against the bill in the House, 112 were cast by Democrats and only 36 by Republicans).<ref name="tpmdc-vote">{{cite news |author=Beutler, Brian |date=December 16, 2010 |url=http://tpmdc.talkingpointsmemo.com/2010/12/house-passes-tax-cut-plan-obama-to-sign.php |title=House Passes Tax Cut Plan, Obama To Sign | |publisher=[[Talking Points Memo]] |access-date=December 17, 2010 |archive-date=December 20, 2010 |archive-url=https://web.archive.org/web/20101220080813/http://tpmdc.talkingpointsmemo.com/2010/12/house-passes-tax-cut-plan-obama-to-sign.php |url-status=dead }}</ref><ref name="wapo-deal"/> Before that, an amendment put forward by Democratic Representative [[Earl Pomeroy]] and the progressives among the Democratic caucus to raise the estate tax – the ultimate sticking point of the deal for them and the cause of a minor revolt among those against it – had failed on a 194–233 vote.<ref name="tpmdc-vote"/><ref name="pol-passed"/><ref>{{cite news|last=Sonmez |first=Felicia |url=http://voices.washingtonpost.com/44/2010/12/democratic-uprising-forces-tax.html |archive-url=https://web.archive.org/web/20121009011105/http://voices.washingtonpost.com/44/2010/12/democratic-uprising-forces-tax.html |url-status=dead |archive-date=October 9, 2012 |title=44 - House resumes debate on tax-cut bill after liberal uprising |newspaper=[[The Washington Post]] |date=December 16, 2010 |access-date=December 17, 2010}}</ref> ''[[The Washington Post]]'' called the approved deal "the most significant tax bill in nearly a decade".<ref name="wapo-deal">{{cite news|url=https://www.washingtonpost.com/wp-dyn/content/article/2010/12/16/AR2010121606672.html?wprss=rss_print |title=Congress votes to extend Bush-era tax cuts until '12 |newspaper=[[The Washington Post]] |date=December 17, 2010 |access-date=December 17, 2010}}</ref>

Obama signed the bill into law on December 17, 2010.<ref name="cnn-signs">{{cite news | url=http://www.cnn.com/2010/POLITICS/12/17/tax.deal/index.html?hpt=T1&iref=BN1 | title=Obama signs tax deal into law | publisher=[[CNN]] | date=December 17, 2010 | access-date=December 17, 2010}}</ref> Much of the Democratic Congressional leadership was absent from the signing ceremony, indicating their ongoing unhappiness with the law.<ref name="wapo-signs">{{cite news | url=https://www.washingtonpost.com/wp-dyn/content/article/2010/12/17/AR2010121704917.html?hpid=topnews | title=For President Obama, signing tax-cut bill makes for a good day after a bad election | author=Balz, Dan | author-link=Dan Balz | newspaper=[[The Washington Post]] | date=December 18, 2010 | access-date=December 21, 2010}}</ref> ''Washington Post'' writer Dan Balz asserted that Obama's ability to win passage for the law indicated a "resilience of the occupant of the Oval Office" and a possible course he would take during the next Congress.<ref name="wapo-signs"/>

==Legislative voting breakdown== Final Senate vote: {| class=wikitable ! Vote by party ! Yea ! Nay |- | Democrats | align="right" | 43 | align="right" | 13 |- | Republicans | align="right" | 37 | align="right" | 5 |- | Independents | align="right" | 1 | align="right" | 1 |- ! Total ! align="right" | 81 ! align="right" | 19 |}

Final House vote: {| class=wikitable ! Vote by party ! Yea ! Nay |- | Democrats | align="right" | 139 | align="right" | 112 |- | Republicans | align="right" | 138 | align="right" | 36 |- ! Total ! align="right" | 277 ! align="right" | 148 |}

==Implementation== The passage of the law so close to the new year caused a scramble for many parties involved.

Employers had to modify payroll systems to the new lower deduction for the FICA payroll tax. The [[Internal Revenue Service]] (IRS) allowed employers until January 31, 2011, to do so.<ref name="wsj-fica">{{cite news | url=https://www.wsj.com/articles/SB10001424052748703395904576025542188239036 | title=IRS Issues 2011 Tax Tables | author=Vaughan, Martin | newspaper=[[The Wall Street Journal]] | date=December 17, 2010}}</ref> While companies that specialize in payroll processing could adapt to the change quickly, smaller companies that do their own payrolls could take longer.<ref name="wsj-fica"/> It was possible that employees would have to wait for up to three paychecks to see the reduction take place.<ref>{{cite news | url=https://www.wsj.com/articles/SB10001424052748704694004576019700512561140 | title=Pay Won't Reflect Tax-Code Changes For Several Weeks | author=Saunders, Laura | newspaper=[[The Wall Street Journal]] | date=December 16, 2010}}</ref>

The IRS had to reprogram its processing systems for some of the provisions in the law, and said that those who file their tax returns early would need to wait until at least the middle of February if they itemize deductions or take certain other deductions.<ref name="ktrk">{{cite news | url=https://abc13.com/archive/7870406/ | title=Tax law changes could mean delayed refunds | author=Ehling, Jeff | publisher=[[KTRK-TV]] | location=Houston | date=December 29, 2010 | access-date=July 22, 2022 | archive-date=June 29, 2011 | archive-url=https://web.archive.org/web/20110629052632/http://abclocal.go.com/ktrk/story?section=news%2Fconsumer&id=7870406 | url-status=live }}</ref> Any refunds coming to taxpayers would be similarly delayed.<ref name="xwin"/> Vendors of tax preparation software also had to modify their applications and get the updates to customers; [[Intuit]], the vendor of [[Turbo Tax]] said they were ready and would hold affected returns until the IRS was ready to process them.<ref name="xwin">{{cite news | url=http://www.fox59.com/news/wxin-many-early-taxreturn-filers-wo-4233,0,6196355.story | title=Many early tax-return filers won't see check until February or March | author=Myers, Zach | publisher=[[WXIN-TV]] | location=Indianapolis | date=January 2, 2011 | access-date=January 3, 2011 | archive-date=June 10, 2012 | archive-url=https://web.archive.org/web/20120610211451/http://www.fox59.com/news/wxin-many-early-taxreturn-filers-wo-4233,0,6196355.story | url-status=dead }}</ref>

==See also== * [[Taxation in the United States]]

==References== {{Reflist|30em}}

==External links== * [https://www.govinfo.gov/content/pkg/COMPS-9724/uslm/COMPS-9724.xml Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010] as amended ([https://www.govinfo.gov/content/pkg/COMPS-9724/pdf/COMPS-9724.pdf PDF]/[https://www.govinfo.gov/app/details/COMPS-9724 details]) in the [[United States Government Publishing Office|GPO]] [https://www.govinfo.gov/help/comps Statute Compilations collection] * [https://www.govinfo.gov/link/plaw/111/public/312?link-type=pdf&.pdf Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010] as enacted ([https://www.govinfo.gov/link/plaw/111/public/312?link-type=details details]) in the [[United States Statutes at Large|US Statutes at Large]] * {{USBill|111|hr|4853}} on [[Congress.gov]] * [https://web.archive.org/web/20110721041251/http://origin.www.gpo.gov/fdsys/pkg/BILLS-111hr4853eas2/pdf/BILLS-111hr4853eas2.pdf Bill as seen by the Senate] * [http://finance.senate.gov/legislation/download/?id=5598822b-8892-4445-b43a-4da7f0b991a0 Senate summary of bill's provisions] * [http://www.jct.gov/publications.html?func=startdown&id=3716 Technical explanation] and [http://www.jct.gov/publications.html?func=startdown&id=3715 Estimated budget effects] from Joint Committee on Taxation * [https://obamawhitehouse.archives.gov/the-press-office/2010/12/17/remarks-president-and-vice-president-signing-middle-class-tax-cuts-bill Remarks by Vice President Biden and President Obama at the bill-signing ceremony]

{{DEFAULTSORT:Tax Relief, Unemployment Insurance Reauthorization, And Job Creation Act Of 2010}} [[Category:United States federal taxation legislation]] [[Category:Acts of the 111th United States Congress]] [[Category:Presidency of Barack Obama]] [[Category:United States fiscal cliff]] [[Category:Economic stimulus programs]] [[Category:Bernie Sanders]] [[Category:Articles containing video clips]]