(1) Republicans say that Obama has raised taxes while Obama claims to have cut taxes for the middle class and raised them for the rich. (2) The truth is somewhere in the middle. (3) Mostly within stimulus packages, he has created tax breaks for families making about 200,000 or less. (4) He has been working to make these breaks permanent as part of his commitment toward easing income inequality. (5) However, some in the middle class have seen taxes go up. (6) He raised the federal tobacco tax and added a new 10% tanning tax for the would-be stars. (7) In addition, he raised the amount that must be accrued in medical bills before these expenses can be deducted. (8) For the rich, Obama has increased income tax and dividend rates between 3 - 5%. (9) Yet the tax breaks for the low and middle class do affect the wealthy since parts of their income are taxed at these rates. (10) Obama has also proposed taxing millionaires about 30% of their income, though this is unlikely to pass.