Campaign Promises

Cabinet/Departments -> Treasury -> Individual Taxes


ItemTreasury
Individual TaxesGrade
TY-12
The Promise: "Will eliminate all income taxation of seniors making less than $50,000 per year. This will eliminate taxes for 7 million seniors -- saving them an average of $1,400 a year-- and will also mean that 27 million seniors will not need to file an income tax return at all."
When/Where: Barak Obama's "Comprehensive Tax Plan" dated 08/20/08.
Source: http://plancksconstant.org/blog1/pdfs/Factsheet_Tax_Plan_FINAL.pdf
Status:This promise was not addressed in the American Recovery and Reinvestment Act of 2009, signed into law 02/17/09. Nor was it addressed in the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, signed into law by President Obama on 12/17/10.

As of end-CY2016, depending upon individual circumstances and income, seniors qualifying for the 10% or 15% tax brackets (less than $50,000) continued to pay taxes at those rates.

This promise was not fulfilled.
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TY-13
The Promise: "Extend aspects of the Bush tax cuts such as child credit expansions and changes to marriage bonuses and penalties."
When/Where: Interview with Tax Policy Center of Urban and Brookings Institutions dated 08/15/08.
Source: https://www.taxpolicycenter.org/sites/default/files/alfresco/publication-pdfs/411749-An-Updated-Analysis-of-the-Presidential-Candidates-Tax-Plans-Updated-September--.PDF
Status:The American Recovery and Reinvestment Act of 2009, signed into law 02/17/09, increased existing credits for children by reducing the minimum earned income used to calculate the tax credit from $12,550 to $3,000 and was applicable for tax years 2009 and 2010. President Obama's FY2010 and FY2011 budget submissions proposed to make the child tax credit permanent starting in CY2013.

The law that eases the "marriage penalty" (forcing married couples with two incomes to pay more tax than two single people living together) would have sunset on 12/31/10, affecting 36M couples.

The Tax Relief, Unemployment Reauthorization, and Job Creation Act of 2010 (H.R. 4853) signed into law by President Obama on 12/17/10, extended and expanded the child tax credit and eased the marriage penalty through CY2012.

This promise was fulfilled.
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TY-14
The Promise: "Freeze the 2009 estate tax law, which exempts the first $3.5 million and has a top rate of 45 percent."
When/Where: Interview with Tax Policy Center of Urban and Brookings Institutions dated 08/15/08.
Source: https://www.taxpolicycenter.org/sites/default/files/alfresco/publication-pdfs/411749-An-Updated-Analysis-of-the-Presidential-Candidates-Tax-Plans-Updated-September--.PDF
Status:Estate taxes with the rate of 45% for anything above $3.5 million (individuals) and $7 million (couples) were left to expire at the end of CY2009, despite President Obama's promise to maintain the CY2009 exemption and maximum rate levels beyond CY2009.

For 2010, the total gift and Estate Tax exemptions were unlimited and estate taxes were expected to revert back, in CY2011, to where they were in the pre-Bush era: exemption only on the first $1 million and anything above that would be taxed at 55%.

Under the The Tax Relief, Unemployment Reauthorization, and Job Creation Act of 2010 (H.R. 4853) signed into law by President Obama on 12/17/10, the first $5M per person ($10M for married couples) of an estate was exempt from taxes and a rate of 35% was assessed against any estate amount exceeding $5M for individuals and $10M for married couples.

By signing the "American Taxpayer Relief Act of 2012" (H.R. 8) on 01/01/13, President Obama again changed the estate tax law. Under that law, the maximum tax rate for estates over $1M was $345,800 plus 40% of anything over that amount.

By end-CY2016, the estate and gift tax exemption for CY2017 had risen to $5.490M per individual ($10.980M per couple) up from $5.450M ($10.900M per couple) in CY2016. Any amount exceeding these amounts was taxed at 40%.

Bottom line: Estate taxes were not frozen at the CY2009 level.

This promise was not fulfilled.
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TY-15
The Promise: "Extend the Bush tax cuts for those making less than $250,000 (couples) or $200,000 (single)."
When/Where: Interview with Tax Policy Center of Urban and Brookings Institutions dated 08/15/08.
Source: https://www.taxpolicycenter.org/sites/default/files/alfresco/publication-pdfs/411749-An-Updated-Analysis-of-the-Presidential-Candidates-Tax-Plans-Updated-September--.PDF
Status:This promise was addressed in President Obama's FY10 budget submission, particularly in Tables S-2, S-5 and S-6. Again in his FY2011 budget submission, President Obama proposed to allow Bush tax cuts for "families earning more than $250,000" to expire at the end of CY2010.

If action had not been taken by Congress by the end of CY2010 on the Bush-era tax cuts, everyone's taxes (income, dividends and capital gains) would have gone up, even for individuals earning less than $200,000 or households earning less than $250,000.

Under the Tax Relief, Unemployment Reauthorization, and Job Creation Act of 2010 (H.R. 4853) signed into law by President Obama on 12/17/10, Bush-era tax cuts for families earning less than $250K and individuals earning less than $200K were extended for tax years 2011 and 2012.

On 07/09/12, President Obama called for a one-year extension through end-CY2013 of the Bush-era tax cuts for families earning less than $250,000, arguing that 98% of all U.S. taxpayers earn less than $250,000.

By signing the "American Taxpayer Relief Act of 2012" (H.R. 8) on 01/01/13, President Obama made permanent Bush-era tax cuts for taxpayers earning less than $400,000.

This promise was fulfilled.
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TY-16
The Promise: "Repeal the Bush tax cuts for those making more than $250,000 (couples) or $200,000 (single)."
When/Where: Interview with Tax Policy Center of Urban and Brookings Institutions dated 08/15/08.
Source: https://www.taxpolicycenter.org/sites/default/files/alfresco/publication-pdfs/411749-An-Updated-Analysis-of-the-Presidential-Candidates-Tax-Plans-Updated-September--.PDF
Status:Bush tax cuts on the "wealthy" were set to expire in FY2011. The FY2010 budget recommendation presented by President Obama to Congress on 02/26/09 (Table S-6) proposed to raise those in a 33% bracket to 36% and those in a 35% bracket to 39.6%. The FY2011 budget submission (Table S-8) had a similar line item.

The Tax Relief, Unemployment Reauthorization, and Job Creation Act of 2010 (H.R. 4853) signed into law by President Obama on 12/17/10 extended Bush-era tax cuts for everyone, including those earning more than $200K (individuals) and over $250K (couples).

On 10/04/11, President Obama's own party (Senate Democrats) canned his proposal to raise taxes on families making over $250K, instead proposing to raise the threshold to $1M. Further, Senate Democrats wanted to impose a 5% surtax on the tax liability of millionaires, a move that by some accounts could have potentially raised $445B over 10 years. This proposal did not gain any bipartisan traction.

On 01/01/13, President Obama signed the "American Taxpayer Relief Act of 2012" (H.R. 8) into law. This law did not repeal Bush-era tax cuts for those making more than $250,000 (couples) or $200,000 (single). Rather it raised the bar to $450,000 for couples and $400,000 for individuals.

This promise was not fulfilled.
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TY-17
The Promise: "Phaseout personal exemptions and itemized deductions for those making more than $250,000 (couples) or $200,000 (single), with thresholds indexed for inflation."
When/Where: Interview with Tax Policy Center of Urban and Brookings Institutions dated 08/15/08.
Source: https://www.taxpolicycenter.org/sites/default/files/alfresco/publication-pdfs/411749-An-Updated-Analysis-of-the-Presidential-Candidates-Tax-Plans-Updated-September--.PDF
Status:The Tax Relief, Unemployment Reauthorization, and Job Creation Act of 2010 (H.R. 4853) signed into law by President Obama on 12/17/10, extended Bush-era tax rates, including exemptions and deductions, for individuals earning more than $200K or couples earning more than $250K through end-CY2012.

The "American Taxpayer Relief Act of 2012" signed into law by President Obama on 01/01/13 increased the overall limitation on itemized deductions from $250,000 for couples to $300,000 and from $200,000 for individuals to $250,000. It re-instituted phase-out limitations for itemized deductions at 3% of adjusted gross income for amounts above these thresholds, and 2% for each $2,500 above the thresholds.

As of end-CY2016, the threshold Adjusted Gross Income (AGI) amounts were $259,400 for single filers, $285,350 for individuals filing as heads of households, $311,300 for married couples filing jointly and $155,650 for married individuals filing separately. The phaseout factors were as follows:

- Personal Exemption: The allowable exemption amounts were reduced by 2% for each $2,500 or part of $2,500 ($1,250 for a married taxpayer filing separately) that the taxpayer's AGI exceeded the threshold amount for the taxpayer's filing status.

- Itemized Deductions: The total amount of itemized deductions was reduced by 3% of the amount by which the taxpayer's AGI exceeded the threshold amount, with the reduction not to exceed 80% of the allowable itemized deductions.

This promise was fulfilled.
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TY-18
The Promise: "...codifying the economic substance doctrine (requiring that transactions qualifying for tax benefits have economic justification beyond those benefits)..."
When/Where: Interview with Tax Policy Center of Urban and Brookings Institutions dated 08/15/08.
Source: https://www.taxpolicycenter.org/sites/default/files/alfresco/publication-pdfs/411749-An-Updated-Analysis-of-the-Presidential-Candidates-Tax-Plans-Updated-September--.PDF
Status:President Obama's FY2010 budget submission included a line item in Table S-6 entitled "Codify Economic Substance Doctrine".

According to Treasury Department documentation, the law prior to CY2010 contained an accuracy-related penalty that applied to an underpayment of tax attributable to a substantial understatement of income tax. The penalty equaled 20 percent of the tax underpayment. The penalty rate increased to 30 percent if the taxpayer had not disclosed the transaction as required by law.

The proposed change to the Economic Substance Doctrine would clarify that a transaction satisfies the economic substance doctrine only if it changed in a 'meaningful way' the taxpayer's economic position, and the taxpayer had a substantial purpose (other than a federal tax purpose) for entering into the transaction.

The codification of these changes took place under Section 1409 of the Health Care and Education Reconciliation Act of 2010, signed into law by President Obama on 03/30/10.

This promise was fulfilled.
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TY-19
The Promise: "Increase capital gains and dividends taxes from 15 to 20 percent for those making more than $250,000 (couples) or $200,000 (single)."
When/Where: Interview with Tax Policy Center of Urban and Brookings Institutions dated 08/15/08.
Source: https://www.taxpolicycenter.org/sites/default/files/alfresco/publication-pdfs/411749-An-Updated-Analysis-of-the-Presidential-Candidates-Tax-Plans-Updated-September--.PDF
Status:Under President Obama's FY2010 budget proposal (Table S-6), upper income tax payers, those earning above the $200,000 (individuals) and $250,000 (couples) thresholds, would have paid a 20% rate on capital gains and dividends. This did not happen.

By signing the Tax Relief, Unemployment Reauthorization, and Job Creation Act of 2010 (H.R. 4853) into law on 12/17/10, President Obama extended the 15% capital gains and dividend tax rates until the end of CY2012 for high income earners.

Under the "American Taxpayer Relief Act of 2012" (H.R. 8) signed into law by President Obama on 01/01/13, the capital gains and dividend income taxes for single filers with taxable income exceeding $400,000 ($450,000 for married filers) increased from 15 to 20 percent.

Because the income thresholds subject to increased capital gains and dividend taxes from 15 to 20% were increased from $200K (single)/$250K (couple) to $400K (single)/$450K (couple), the basic tenets of this promise were not satisfied.

As of end-CY2016, a married couple in the highest tax bracket of 39.6% and earning more than $470,701 paid 20% for long term capital gains. Between $250K and $470K, the original rate of 15% was maintained.

This promise was not fulfilled.
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TY-20
The Promise: "I can make a firm pledge. Under my plan, no family making less than $250,000 a year will see any form of tax increase. Not your income tax, not your payroll tax, not your capital gains taxes, not any of your taxes."
When/Where: Obama Campaign Speech "On Taxes", Dover, NH 09/12/08.
Source: http://www.presidency.ucsb.edu/ws/index.php?pid=78612
Status:During President Obama's two terms in office, the tax rate for families earning $250K or less remained stable with the highest bracket of 33% for single filers, married couples filing jointly and heads of households.

The picture is different for married people filing separately. In CY2010, these filers were taxed at the 35% rate for any amount above $186,825. The American Taxpayer Relief Act of 2012 (Public Law 112-240), signed into law by President Obama on 01/02/13, permanently extended tax cuts in effect at that time, but added a top marginal tax rate of 39.6% for those with higher incomes.

For married people filing separately, the CY2013 tax rate went up from $35% to 39.6% for earnings exceeding $225$ (less than $250K). By end-CY2016, the tax rate for married people filing separately was 39.6% for earnings exceeding $233,476 (still less than $250K).

This promise was not fulfilled.
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TY-21
The Promise: "Expand the earned income tax credit for workers without children and taxpayers with more than three children. Equalize thresholds for married filers and head of household filers."
When/Where: Interview with Tax Policy Center of Urban and Brookings Institutions dated 08/15/08.
Source: https://www.taxpolicycenter.org/sites/default/files/alfresco/publication-pdfs/411749-An-Updated-Analysis-of-the-Presidential-Candidates-Tax-Plans-Updated-September--.PDF
Status:For CY2012, single filers (head of household) with three or more children and married couples with three or more children could each receive a maximum Earned Income Tax Credit (EITC) of $5,891 if income was less than $45,060 and $50,270 respectively.

For CY2013, childless workers earning less than $14,340 ($19,680 for childless married couples) could receive an EITC of $487, a $12 increase over CY2012. Head of household and married tax payers filing jointly with three or more qualifying children and earning less than $46,227 and $51,567 respectively could receive an EITC of $6,044.

This promise was fulfilled.
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TY-22
The Promise: "Enact a Making Work Pay tax credit that would equal 6.2 percent of up to $8,100 of earnings (yielding a maximum credit of approximately $500), indexed for inflation."
When/Where: Interview with Tax Policy Center of Urban and Brookings Institutions dated 08/15/08.
Source: https://www.taxpolicycenter.org/sites/default/files/alfresco/publication-pdfs/411749-An-Updated-Analysis-of-the-Presidential-Candidates-Tax-Plans-Updated-September--.PDF
Status:A "Making Work Pay" maximum tax credit of $400 for working individuals (and $800 for working married couples) was funded in the amount of $116.2 billion by Congress under the American Recovery and Reinvestment Act of 2009, signed into law 02/17/09.

For single filers in CY2010, this credit started phasing out at $75,000 of Adjusted Gross Income (AGI) and terminated at $95,000. Phase-out for joint filers started at $150,000 and ended at $190,000 of AGI.

Instead of the "Making Work Pay" tax credit which expired at the end of CY2010, all American workers received a 2% Social Security withholding break on their payroll taxes in CY2011 and CY2012, a reduction from 6.2% to 4.2% on wages up to $106,800. This tax break expired on 12/31/12 and payroll taxes reverted to the 6.2% level.

When this promise was made, then-Candidate Obama did not specify how long the "Making Work Pay" tax credit would remain in effect.

Nonetheless, this promise was fulfilled.
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TY-23
The Promise: "The child and dependent care credit is a nonrefundable tax credit available to individuals paying for child care needed so they can either work or look for work. Senator Obama's tax plan would make the credit refundable and increase the maximum rate from 35 to 50 percent."
When/Where: Interview with Tax Policy Center of Urban and Brookings Institutions dated 08/15/08.
Source: https://www.taxpolicycenter.org/sites/default/files/alfresco/publication-pdfs/411749-An-Updated-Analysis-of-the-Presidential-Candidates-Tax-Plans-Updated-September--.PDF
Status:Since its inception in CY1976, the Child and Dependent Case Tax Credit (CDCTC) has been a non-refundable tax credit designed to help defray the expenses of providing care for children under 13 years of age or disabled dependents as long as a parent or care-giver was working or looking for work.

Under the Economic Growth and Tax Relief Reconciliation Act (EGTRRA) of 2001, the CDCTC's top credit rate was set at 35%, boosted the maximum childcare expenses eligible for the credit to $3,000, $6,000 if a family had two or more children, and increased the threshold above which the credit rate declined from $10,000 to $15,000.

By end-CY2016, the CDCTC was still calculated by multiplying the amount of qualifying expenses (a maximum of $3,000 if the taxpayer had one qualifying individual, and up to $6,000 if the taxpayer had two or more qualifying individuals) by the appropriate credit rate. The credit rate depended on the taxpayer's Adjusted Gross Income (AGI), with a maximum credit rate still at 35% declining, as AGI increased, to 20% for taxpayers with an AGI above $43,000. Even though the credit formula (due to the higher credit rate) was more generous toward lower-income taxpayers, many lower-income taxpayers received little or no credit since the credit remained nonrefundable.

This promise was not fulfilled.
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TY-24
The Promise: "Tax carried interest as ordinary income."
When/Where: Campaign Interview with Tax Policy Center of Urban and Brookings Institutions dated 08/15/08.
Source: https://www.taxpolicycenter.org/sites/default/files/alfresco/publication-pdfs/411749-An-Updated-Analysis-of-the-Presidential-Candidates-Tax-Plans-Updated-September--.PDF
Status:Carried interest is generally earned by those who manage partnership-structured funds, such as venture capital, private equity, hedge, real estate and infrastructure. Most carried interest is treated for tax purposes as a capital gain or a dividend (i.e. at a much lower rate than ordinary income tax rates).

President Obama's FY10 budget submission (Table S-6) proposed to tax carried interest as ordinary income instead of at the lower capital gains rate. His FY2011 budget submission included similar language. This would have meant that carried interest would be taxed, at the time, at 35% (increased in CY2013 to 39.6%) instead of the capital gains rate of 15%, a 157% tax hike. Congress did not concur with this proposal, viewing it as a tax hike.

As of end-CY2016, no legislation had been passed to address this issue. Carried interest was not taxed as ordinary income during the Obama Administration.

This promise was not fulfilled.
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TY-25
The Promise: "Extend and index the temporary fix to the Alternative Minimum Tax that was passed in 2007."
When/Where: Campaign Interview with Tax Policy Center dated 09/12/08.
Source: http://www.taxpolicycenter.org/UploadedPDF/411749_updated_candidates.pdf
Status:Without annual "patches" to raise the Alternative Minimum Tax (AMT) income exemption consistent with inflation, the AMT exemption amounts would return to CY2000 levels -- $45,000 for joint filers and $33,750 for singles. This would result in the imposition of an AMT on a large percentage of the tax-paying population the AMT program was never intended to tax.

A feature of the AMT for qualified taxpayers is that it eliminates standard tax brackets.

An AMT patch was included in the American Recovery and Reinvestment Act (ARRA) of 2009. In late 12/10, the CY2010 levels were set at $74,450 for joint filers and $48,450 for singles through CY2011.

On 01/01/13, President Obama signed the "American Taxpayer Relief Act of 2012" (H.R. 8). This bill provided a permanent patch to the AMT at the $78,750 level for joint filers and $50,600 for single filers, to be indexed for inflation.

By end-CY2016, the AMT rate was 26% if income was $186,300 or less ($93,150 or less if married filing separately) and an AMT of 28% if income was more than $186,300.

This promise was fulfilled.
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TY-26
The Promise: "...calling for legislation that would allow withdrawals of 15% up to $10,000 from retirement accounts without penalty (although subject to the normal taxes). This would apply to withdrawals in 2008 (including retroactively) and 2009."
When/Where: Stated in "Healing the Economy: The Obama-Biden Plan," undated.
Source: http://govcentral.monster.com/benefits/articles/5060-healing-the-economy-the-obama-biden-plan?page=3
Status:Penalty-free withdrawals from Individual Retirement Accounts (IRAs) and 401(k) accounts are permissible prior to the age of 59 1/2 for one or more of the following: (1) education purposes, (2) first-time home buyers (up to $10,000), (3) unreimbursed medical expenses less than or equal to or less than the expenses minus 7.9% of one's adjusted gross income, (4) if one is a military reservist called to active duty for at least 180 days, (5) health insurance premiums if unemployed for 12 weeks, (6) qualified as disabled by an insurance company or the Social Security Administration, and (7) victim of a natural disaster.

This promise was to apply to withdrawals in CY2008 and CY2009. That didn't happen.

As of end-CY2016, no legislation had been signed into law by President Obama that would allow withdrawals of 15% up to $10,000 from retirement accounts without penalty.

This promise was not fulfilled.
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TY-27
The Promise: "...closing loopholes in the corporate tax deductibility of CEO pay."
When/Where: Interview with Tax Policy Center of Urban and Brookings Institutions dated 08/15/08.
Source: https://www.taxpolicycenter.org/sites/default/files/alfresco/publication-pdfs/411749-An-Updated-Analysis-of-the-Presidential-Candidates-Tax-Plans-Updated-September--.PDF
Status:One of several loopholes affecting Chief Executive Officer (CEO) pay is that businesses can deduct CEO pay as a business expense up to $1M. Beyond that amount, CEO's can be paid with stock options or other performance-based pay that can be exempted from taxation.

Despite numerous opportunities to address this promise during his two terms in office, President Obama elected not to challenge non-salary compensation for CEOs.

This promise was not fulfilled.
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TY-28
The Promise: "Currently, the IRS receives Americans' financial information directly from employers and banks. Obama will ensure that the IRS uses this information to give taxpayers the option of a pre-filled tax forms to verify, sign and return to the IRS or online."
When/Where: Obama's Economic Agenda "Keeping America's Promise," dated 01/29/08.
Source: http://obama.3cdn.net/8f478c5e1bb07ca0b1_sh1umv2zy.pdf
Status:Representative Jim Cooper (TN-D) introduced the "Simple Return Act of 2010" (H.R. 5050) on 04/15/10 that would allow the Internal Revenue Service (IRS) to automatically fill out basic tax return (i.e. W-2, 1099) information for every American citizen, based on information it receives from employers and financial institutions. This bill expired with the 111th Congress but was reintroduced to the 112th Congress (H.R. 1069) on 03/14/11. No action beyond initial committee referral was taken on this bill by the 112th Congress and it expired at the end of CY2012.

Under the above bill, use of the IRS-generated data and forms would have been optional. Approximately 40M Americans would have potentially benefited from this initiative.

This promise was not fulfilled.
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TY-29
The Promise: "Create a refundable tax credit equal to 10 percent of mortgage interest for nonitemizers, up to a maximum credit of $800"
When/Where: Interview with Tax Policy Center of Urban and Brookings Institutions dated 08/15/08.
Source: https://www.taxpolicycenter.org/sites/default/files/alfresco/publication-pdfs/411749-An-Updated-Analysis-of-the-Presidential-Candidates-Tax-Plans-Updated-September--.PDF
Status:As of end-CY2016, tax reductions for payment of home mortage interest still required itemization on annual individual tax filings.

This promise was not fulfilled.
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TY-30
The Promise: "Obama believes that one strong option is increasing the maximum amount of earnings covered by Social Security by lifting the payroll tax cap on earnings above $250,000."
When/Where: Obama Plan: "Helping America's Seniors" dated 08/13/08.
Source: http://obama.3cdn.net/f6f6e3259bb8cf1554_6xlnmvr35.pdf
Status:The wage base for Social Security taxes for CY2009 was $106,800, unchanged for CY2010 and CY2011. By end-CY2016, the wage base had increased to $118,500, unchanged from CY2015.

Senator Bernard Sanders (I-VT) introduced the "Keeping Our Social Security Promises Act" (S. 1558) on 09/14/11 to apply payroll taxes "to remuneration in excess of $250,000," as does the "Act for the 99%" (H.R. 3638) introduced by Congressman Raul Grijalva (D-AZ) on 12/13/11. Both bills expired with the 112th Congress at the end of CY2012.

During President Obama's two terms in office, there was no lifting of payroll tax caps on earnings above $250,000, which would have left a "doughnut hole" for those earning between $118,500 and $250,000.

This promise was not fulfilled.
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TY-31
The Promise: "Through the Exchange, any American will have the opportunity to enroll in the new public plan or an approved private plan, and income-based sliding scale tax credits will be provided for people and families who need it."
When/Where: Obama-Biden Plan: "To Lower Health Care Costs and Ensure Affordable, Accessible Health Coverage for All" dated 10/03/08.
Source: http://courses.ischool.berkeley.edu/i202/f08/lectures/Obama_Healthcare-1.pdf
Status:The Patient Protection and Affordable Care Act (ACA) (Public Law 111-148) signed into law by President Obama on 03/23/10, addressed sliding scale tax credits for individuals and families whose earnings were between 133% and 400% of the poverty level.

For CY2012, the poverty level was defined as $11,170 for an individual and $27,010 for a family of five in the contiguous States and D.C. These rates were $13,970 and $12,860 for an individual in Alaska and Hawaii respectively, and $33,770 and $31,060 for a family of five in Alaska and Hawaii respectively.

This promise was fulfilled.
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TY-32
The Promise: "...will support the Artist-Museum Partnership Act, introduced by Sen. Patrick Leahy, D-Vt. The Act amends the Internal Revenue Code to allow artists to deduct the fair market value of their work, rather than just the costs of the materials, when they make charitable contributions"
When/Where: Obama-Biden Plan: "Champions for Arts and Culture", dated 09/11/08.
Source: http://muzartworld.org/president-barack-obama-and-joe-biden-champions-for-arts-and-culture/
Status:Under current law, artists who donate self-created works are only able to deduct the cost of supplies such as canvas, pen, paper and ink, not their true value. Prior to CY1969, artists were able to take a deduction equivalent to the fair market value of a work, but Congress changed the law with respect to artists in the Tax Reform Act of 1969.

To address this situation, Senator Patrick Leahy (D-VT) introduced the Artist-Museum Partnership Act (S-548) on 02/12/07 during the 110th Congress. This bill did not get beyond the Senate Committee on Finance and died at the end of CY2008 with the 110th Congress.

Congressman John Lewis (D-GA) introduced a similar bill (H.R. 1126) to the 111th Congress on 02/23/09. His version of this bill was referred to the House Committee on Ways and Means the same date and no further action was taken toward its passage by the time the 111th Congress expired at the end of CY2010.

Congressman Lewis introduced a new bill, the Artist-Museum Partnership Act of 2011 (H.R. 1190) on 03/17/11. On the Senate side, Senator Charles Schumer (D-NY) introduced the "Art and Collectibles Capital Gains Tax Treatment Parity Act" (S. 930) on 05/10/11. Both of these bills proposed to provide a tax deduction equal to fair market value for charitable contributions of literary, musical, artistic, or scholarly compositions created by the donor. Neither bill progressed beyond preliminary committees to which they were submitted before they expired with the 112th Congress at the end of CY2012.

Similar bills were introduced during subsequent congresses, but they too failed to be enacted.

This promise was not fulfilled.
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