Middle-class tax cuts preserved for a year in bill passed by Senate
Tax rates would rise by 4 percent on incomes above $250,000 for couples and $200,000 for single filers. Popular breaks like the child tax credit would be preserved.
The extension, passed on a vote of 51 to 48, represents a short-term win, at least, for President Barack Obama, who has been pushing for a similar plan. But it appeared unlikely that the House would embrace a similar measure before the election, having proposed its own bill to extend all the Bush-era cuts. The House hasn’t proposed extending Obama’s breaks for millions of middle-class families.
Democrats estimated the GOP version would add an extra $155 billion to the deficit. They also argued that the GOP plan raises taxes on some 25 million Americans by not renewing the child tax credit, the earned income tax credit and a college tuition break.
The GOP version failed in the Senate, 45 to 54, with GOP Sens. Scott Brown (Mass.) and Susan Collins (Maine) against it, and Democratic Sen. Mark Pryor (Ark.) voting for it.
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