On Friday afternoon, President Barack Obama signed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 into law. The measure extends all the Bush income tax cuts for two years, provides continued aid to no-fault jobless who have not exhausted the current maximum amount of weeks, depending on the unemployment rate of a state, and cuts the payroll tax from 6.2% to 4.2% during the two year duration of tax cuts.
This is the notorious “compromise” that has received a lot of attention from lawmakers after the President met with key republican lawmakers after the Thanksgiving holiday. The bill received large bi-partisan support in both the US Senate and the House of Representatives and is the law for the next two years. The President has stated on a number of occasions that this is the best way to move forward to ensure tax cuts for the middle class continue and aid to no fault jobless is extended.
On November 11, 2010, this was the compromise that was signaled by David Axelrod when he stated: “we must deal with the world as we find it”. The statement that was made by the President’s Senior Advisor was in response to the overwhelming victory by republicans in the 2010 midterm elections and the reality of not being able to move forward with any legislation if republicans and democrats could not come together and reach a middle ground.
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