Breaking down H.R 4853, the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010
NETWORK supports legislation surrounding the recent tax cut compromise between President Obama and the Republican leadership, but will remain vigilant during the next two years in advocating for a more equitable tax structure that will ensure a strong safety net far into the future. The tax bill passed the Senate on December 15, 2010. The House also approved it late in the night of the following day (277 to 148, with 112 Democrats and 36 Republicans voting "no"). It was then sent to President Obama for his signature.
What’s in the compromise package?
Below is a breakdown of just a few of the pieces included in H.R 4853, the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010. These pieces are critical to understanding the effects of these tax provisions on the economically marginalized and why the package must be passed before Congress adjourns. The Center on Budget and Policy Priorities estimates that the Tax Relief Package will keep 2.4 million Americans above the federal poverty line, minimize the poverty of 19.4 million Americans, including 7.2 million children, and will allow the extension of federal unemployment benefits that will aid 7 million unemployed workers. The total package is estimated to cost $800 billion and will serve as both a job creation tool and safety net for Americans, specifically those experiencing long-term unemployment
Temporary Extension of Tax Relief
Extends the current CTC law through 2012. The CTC allows filers to claim this credit for each child under age 17 to reduce their federal income tax. The 2001 tax cuts raised the CTC from $500 to $1000 and the American Recovery and Reinvestment Act of 2009 lowered the earnings floor for the refundable credits from $10,000 to $3000 - providing greater support to low income families. The Child Tax Credit serves as a critical tool to keep 1.3 million Americans above the poverty line.
Extends Marriage Penalty Relief and the Earned Income Tax Credit through 2012. The earne