On Friday, President Barack Obama signed the $858 billion Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 into law which provides tax relief for families around the country and prevents a massive tax hike next year.
In his remarks Friday afternoon, the President said “by a wide bipartisan margin, both houses of Congress have passed a package of tax relief that will protect the middle class, grow our economy and create jobs for the American people“.
This bipartisan effort was prompted by the fact that tax rates for every American were poised to automatically increase on January 1st. If that had come to pass, the average middle-class family would have had to pay an extra $3,000 in taxes next year. That wouldn’t have just been a blow to them — it would have been a blow to our economy just as we’re climbing out of a devastating recession.
According to a fact sheet from the White House, nearly half of all African American children will benefit from the expansion of the Earned Income Tax Credit and Child Tax Credit.
Be sure to check out more ways the legislation benefits you.