Senate Passes Tax Cut Extension For All But Wealthiest
The bill passed 51-48, mostly along party lines, Bloomberg Businessweek reported. It would raise an estimated $50 billion a year.
The legislation is expected to be rejected next week by the Republican-controlled House of Representatives, according to Reuters.
“The House can either pass these middle-class tax cuts like we did, or it will be clear they are putting millionaires first,” Senator Charles Schumer, a New York Democrat, told Bloomberg.
The Senate rejected a Republican alternative that would have extended the lower rates for all income levels, Reuters reported. The tax cuts signed into law by former President Bush will expire on Dec. 31, barring enactment of legislation.
“It’s time for House Republicans to drop their demand for another $1 trillion giveaway to the wealthiest Americans,” President Obama said in a statement after the vote.
According to Reuters, the tax cuts will be extended through 2013 under the Democrats’ bill. Income of the wealthy - those who earn above $250,000 - would be taxed at either 36 percent or 39.6 percent. Currently, the rates are 33 percent and 36 percent for the top two income groups.
“The House will vote next week to stop that tax hike,” House Speaker John Boehner, R-Ohio, told the Associated Press, “and until the Senate does the same, the threat to our economy remains.”
Read more of Neon Tommy’s coverage on tax cuts here.
Reach Executive Producer Agnus Dei Farrant here.