Thursday, December 16, 2010

Obama's $858 billion tax-cut plan heads to House | Reuters

"(Reuters) - A deal that President Barack Obama struck with Republicans to extend tax cuts for nearly every working American and spur job growth moves to the House of Representatives for passage as early as Thursday.

Many of Obama's fellow Democrats in that chamber strongly oppose the measure as favoring the wealthy, and are still angry with him for cutting the deal with Republicans without them.

'We have a situation where we have a proposal before us that gives 6,600 families in America $25 billion and holds the rest of the provisions in the bill, (such as) low-income tax cuts, hostage to that blackmail,' House Speaker Nancy Pelosi said on Wednesday, referring to a provision on the estate tax.

Still, most analysts believe the deal, which has already received overwhelming bipartisan approval in the Senate, will pass the House with substantial backing from Republicans and some Democrats.

The legislation would extend for two years income tax cuts enacted under Republican former President George W. Bush, with Democrats backing off their earlier fervent opposition to extending the cuts for the richest Americans. The Bush-era cuts are due to expire at the end of 2010 unless Congress acts."

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