Obama Signs Huge Tax-Cut Bill Into Law

December 18, 2010

President Obama on Friday signed the controversial tax bill that, despite its flaws, could ultimately help the real estate industry.

The $858 billion bill extends the Bush-era tax cuts for all Americans for two more years and extends unemployment benefits for 13 months, among other measures.

The bill has been criticized by Republicans and Democrats for many reasons, including the fact that the highest-earning Americans don’t need a tax break.

Obama smiles as he signs the tax cut bill

Thanks to the Associated Press for this photo of President Obama sporting a big smile after signing the controversial tax-cut bill on Friday.

Obama said this bill is a victory for middle class families.

“In fact, not only will middle class Americans avoid a tax increase,” said the President, “but tens of millions of Americans will start the new year off right by opening their first paycheck to see that it’s larger than the one they get right now.”

Officials said that if the Bush-era tax cuts weren’t extended, the average family would have seen a tax increase of about $3,000 next year.

Other measures in the bill:

*The Estate Tax exempts estates under $10 million for couples and taxes subsequent income at 35 percent. According to liberal opponents, those levels are way too generous.

*Social Security payroll taxes will be cut from 6.2 percent to 4.2 percent for next year. That two percent reduction would mean a worker making $50,000 would save $1,000 per year; one making $100,000 would save $2,000, and so on.

*College students and their families will receive tax breaks.

*The earned income tax credit and $1,000-per-child tax credit will be extended.

*Also extended will be tax incentives for businesses so they can expand, as well as lower taxes on capitol gains and dividends.

The President said the bill would create jobs and stimulate the struggling economy, which would indeed help the real estate market get back on its feet.

“We are here with some good news for the American people this holiday season,” Obama said. “This is real money that is going to make a real difference in peoples’ lives.”

Categories: Economy

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