American Taxpayer Relief Act of 2012

American Taxpayer Relief Act of 2012
U.S. Government · Public domain · source
Short title	American Taxpayer Relief Act of 2012
Long title	An Act to extend certain tax relief provisions enacted in 2001 and 2003, and to provide for expedited consideration of a bill providing for comprehensive tax reform, and for other purposes
Enacted by	112th United States Congress
Enacted date	January 2, 2013
Signed by	Barack Obama
Signed date	January 2, 2013
Effective date	January 2, 2013

American Taxpayer Relief Act of 2012 was a federal statute enacted by the 112th United States Congress and signed into law by Barack Obama, the President of the United States, on January 2, 2013. The law addressed the impending fiscal cliff by making permanent the Bush tax cuts for individuals with incomes below $400,000 and joint filing couples with incomes below $450,000, while allowing the tax cuts to expire for those above these thresholds, as advocated by Nancy Pelosi and Harry Reid. The legislation also included provisions related to estate tax, alternative minimum tax, and unemployment benefits, which were supported by John Boehner and Mitch McConnell. The law was influenced by the work of the National Commission on Fiscal Responsibility and Reform, also known as the Simpson-Bowles Commission, which was established by Barack Obama in 2010.

Introduction

The American Taxpayer Relief Act of 2012 was a response to the fiscal cliff, a combination of tax increases and spending cuts that were set to take effect on January 1, 2013, as a result of the Budget Control Act of 2011, which was signed into law by Barack Obama on August 2, 2011. The law was the result of negotiations between Vice President Joe Biden and Senate Minority Leader Mitch McConnell, as well as discussions between President Barack Obama and House Speaker John Boehner, with input from Federal Reserve Chairman Ben Bernanke and Treasury Secretary Timothy Geithner. The legislation was also influenced by the work of the Congressional Budget Office, which provided estimates of the fiscal impact of the law, and the Joint Committee on Taxation, which analyzed the tax provisions of the law. Additionally, the law was supported by various organizations, including the National Association of Manufacturers and the U.S. Chamber of Commerce, which were represented by Thomas Donohue and Jay Timmons.

Legislative History

The American Taxpayer Relief Act of 2012 was introduced in the United States Senate on December 30, 2012, by Senate Majority Leader Harry Reid, with the support of Senate Majority Whip Dick Durbin and Senator Chuck Schumer. The bill was passed by the Senate on January 1, 2013, with a vote of 89-8, with Senator Orrin Hatch and Senator John Cornyn voting in favor of the bill. The bill was then sent to the United States House of Representatives, where it was passed on January 1, 2013, with a vote of 257-167, with Representative Eric Cantor and Representative Kevin McCarthy voting against the bill. The law was signed by President Barack Obama on January 2, 2013, at the White House, with Vice President Joe Biden and Treasury Secretary Timothy Geithner in attendance. The signing of the law was also witnessed by Federal Reserve Chairman Ben Bernanke and Labor Secretary Hilda Solis.

Provisions

The American Taxpayer Relief Act of 2012 included a number of provisions related to taxation, including the extension of the Bush tax cuts for individuals with incomes below $400,000 and joint filing couples with incomes below $450,000, as advocated by Nancy Pelosi and Steny Hoyer. The law also included provisions related to estate tax, alternative minimum tax, and unemployment benefits, which were supported by John Boehner and Mitch McConnell. Additionally, the law included provisions related to tax credits for renewable energy and energy efficiency, which were supported by Senator Jeff Bingaman and Representative Henry Waxman. The law also included provisions related to the Patient Protection and Affordable Care Act, also known as Obamacare, which was signed into law by Barack Obama on March 23, 2010. Furthermore, the law was influenced by the work of the Internal Revenue Service and the Social Security Administration, which were represented by Douglas Shulman and Michael Astrue.

Impact and Reception

The American Taxpayer Relief Act of 2012 had a significant impact on the United States economy, as it prevented a significant increase in taxes that would have occurred if the Bush tax cuts had been allowed to expire, as warned by Federal Reserve Chairman Ben Bernanke and Treasury Secretary Timothy Geithner. The law was generally well-received by Wall Street and the business community, with JPMorgan Chase CEO Jamie Dimon and Goldman Sachs CEO Lloyd Blankfein expressing support for the law. However, the law was criticized by some Republicans, including Senator Ted Cruz and Representative Paul Ryan, who argued that it did not do enough to address the federal budget deficit, which was a concern shared by Congressional Budget Office Director Douglas Elmendorf and Federal Reserve Chairman Ben Bernanke. Additionally, the law was supported by various organizations, including the AARP and the National Education Association, which were represented by A. Barry Rand and Dennis Van Roekel.

Economic Effects

The American Taxpayer Relief Act of 2012 had a number of economic effects, including the prevention of a significant increase in taxes that would have occurred if the Bush tax cuts had been allowed to expire, as estimated by the Congressional Budget Office and the Joint Committee on Taxation. The law also had an impact on the unemployment rate, as it extended unemployment benefits for millions of Americans, as supported by Labor Secretary Hilda Solis and Federal Reserve Chairman Ben Bernanke. Additionally, the law had an impact on the stock market, with the Dow Jones Industrial Average and the S&P 500 increasing in the days following the passage of the law, as reported by CNBC and Bloomberg. The law also had an impact on the housing market, as it extended the Mortgage Debt Relief Act, which was supported by National Association of Realtors President Gary Thomas and Mortgage Bankers Association President David Stevens. Furthermore, the law was influenced by the work of the Federal Reserve System, which was represented by Federal Reserve Chairman Ben Bernanke and New York Federal Reserve President William Dudley. Category:United States federal taxation legislation