U.S. House passes tax cuts bill for middle class
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U.S. House of Representatives approved Thursday a bill to extend tax cuts for the middle class Americans, letting extra cuts for the wealthy to expire.
But the bill, which was voted at 234 to 188, is expected to be blocked in the Senate since the Republicans vowed to extend additional low tax rates for the wealthy Americans as well.
Sweeping income tax cuts enacted under former President George W. Bush are set to expire on Dec. 31 this year. If Congress does not act, taxpayers at every income level would be hit with a significant tax increase.
U.S. President Barack Obama and Democratic leaders in Congress want to extend the tax cuts only for individuals making less than 200,000 dollars and married couples making less than 250,000 dollars yearly.
Republicans and some rank-and-file Democrats want to extend the tax cuts for everyone.
Obama had expressed his willingness to compromise on the tax issue since the Republicans had won the control of the House after the midterm election in early November.
The new Congress will start to work from January 2011.
Democrats said the House vote wouldn't undermine bipartisan negotiations on the tax cuts.
"We are putting this bill on the floor today because we believe it is important to extend tax cuts for the middle class," said Rep. Chellie Pingree, D-Maine. She said tax cuts for the wealthy have done nothing to stimulate the economy.
But Republicans argued that an increase for the wealthy will also hurt the still fragile recovery.
It is expected that the bill will be modified and got final approval in the Senate before the end of this year.
