Bush-era tax cuts given life in House vote
Rep. Steny Hoyer (D-Maryland) speaks to the media shortly after the US House of Representatives voted to pass a largely symbolic plan to extend all tax cuts that are set to lapse at the year-end, on August 1, 2012, in Washington, DC. A rival Democratic bill was passed by the Senate last week which would raise tax rates on the wealthy.
The Republican-controlled House passed a bill today that extends the Bush-era tax cuts for one year, a measure President Barack Obama has promised to veto.
The cuts are set to expire Dec. 31, but the GOP wants them to continue for all earners.
Obama and the Democrats want them extended for individuals earning as much $200,000 annually, or $250,000 for families; however, the president has said those who bring home more than that need to pay more tax.
Republicans pushed the measure through by a 256-171 vote, The Associated Press reported.
One Republican voted no, while 19 Democrats supported the measure.
The issue is certain to dominate the fall election.
This vote was among the final actions the House takes before breaking for a five-week recess, The Los Angeles Times said.
Democrats who control the Senate earlier this year approved a plan to allow tax cuts for the wealthiest 2 percent of earners to expire.
“We all admire financial success, but when we give away trillions in tax cuts we cannot afford to those who need them the least, it’s the middle class who has to make up the difference,” said Rep. Xavier Becerra (D–Los Angeles), the LA Times reported.
More from GlobalPost: Senate extends Bush-era tax cuts pushed by Democrats
The Republican option would cost the US $403 billion, The Wall Street Journal said.
Furthermore, the Congressional Budget Office predicts that the US economy would shrink at a 1.3 percent annual rate during the first six months of 2013, the WSJ said.
The GOP counters by saying taxing the wealthy would hurt the economy by compromising job creation and businesses.
“It’s time to put the politics aside,” House Speaker John Boehner (R–Ohio) said, according to the WSJ. “Raising taxes at this point in this economy is a very big mistake.”
More from GlobalPost: Obama presses House on tax cuts with 100 days to election