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Obama Signs Fiscal Cliff Bill into Law to Avert Most Tax Hikes

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Washington, D.C. (January 3, 2013)

By Margaret Talev

Bloomberg

(Bloomberg) President Barack Obama signed the legislation that enacts a last-minute budget deal and averts income tax increases for most U.S. workers, marking an end to a yearlong impasse.

The legislation was sent to the White House today and a copy was transmitted to Obama in Hawaii, where he’s vacationing with his family. The president’s signature was put on the legislation by an autopen signing machine in Washington.

The legislation passed the House and Senate on Tuesday and it delays the automatic spending cuts by two months and raises taxes on individuals earning more than $400,000 a year and households making more than $450,000.

Obama last night called it “just one step” in a process to shrink the deficit, which has exceeded $1 trillion in each of the last four years, and strengthen the economy.

Obama has used a mechanical autopen to sign legislation into law at least twice before.

While at a meeting of Asian leaders Indonesia in 2011 the president authorized the use of the autopen to put his signature on legislation to fund the government. It also was used the same year to sign an extension of the Patriot Act while Obama was at a summit in France of leaders of the world’s industrial nations.

A July 7, 2005, opinion by the Justice Department under then-President George W. Bush argued that a president can sign a bill within the meaning of Article I, Section 7 of the Constitution “by directing a subordinate to affix the president’s signature to it, for example by autopen.”

The document cites common law and court opinions at the time the Constitution was drafted and thereafter holding that “personal handwriting” isn’t required to render a legal signature.

The 29-page opinion concludes “that the president need not personally perform the physical act of affixing his signature to a bill he approves and decides to sign in order for the bill to become law.”

—With assistance from Joe Sobczyk in Washington. Editors: Joe Sobczyk, Mark Williams

4 Comments

pusherhombre, We sometimes run wire service articles from Bloomberg to help us with our Washington and business/financial coverage. While the Bloomberg articles aren't geared toward accountants, they help us provide news that we think will be of interest to our readers. We also run many of our own stories with more details on tax legislation that are aimed more specifically at our core audience. For the fiscal cliff legislation, please see http://www.accountingtoday.com/news/Congress-Approves-Fiscal-Cliff-Deal-65202-1.html and http://www.accountingtoday.com/news/Fiscal-Cliff-Deal-Far-Reaching-Tax-Implications-65223-1.html Thanks for reading and for everybody's feedback.

Posted by: MikeCohn | January 3, 2013 12:54 PM

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Am I reading "Time" magazine, or am I reading "Accounting Today for the Web CPA?"

I notice at the top of the article this is a Bloomberg article. I guess I am reading an article of "Time" quality after all.

Posted by: pusherhombre | January 3, 2013 12:45 PM

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Completely agree with OHPCPA -- this story could have finished with the fourth paragraph. Instead we have 5 paragraphs dealing with the "autopen". I doubt a severe majority of the readers (here) care what the president uses to sign legislation - just that he does and what the legislation actually does.

Posted by: Zeo | January 3, 2013 9:10 AM

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an auto-pen is the story??? it seems you have totally missed your target audience. how about the provisions depreciation credits deductions !!!!

Posted by: ohpcpa | January 3, 2013 8:54 AM

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