By DPA,
Washington: The US House of Representatives was preparing to vote Thursday on a tax compromise bill agreed between President Barack Obama and Republicans, possibly ending a months-long political battle that threatened an already fragile US economy.
The legislation would extend for two years a major round of tax cuts first enacted under then president George W. Bush. The Senate passed the deal Wednesday in a rare bipartisan vote, leaving only the House standing in the way of Obama signing the extension into law.
The House vote marks the culmination of months of wrangling between Obama’s left-leaning Democrats, who wanted an extension only for middle-class households, and conservative Republicans, who sought a permanent extension for all income brackets.
But many Democrats and some Republicans in the lower House chamber have opposed the deal. Left-leaning legislators planned to try to force changes before the final vote Thursday, which would send the fragile compromise back to the Senate.
Obama in a statement after the Senate vote Wednesday said he recognized that “not every member of Congress likes every piece of this bill, and it includes some provisions that I oppose.”
“But as a whole, this package will grow our economy, create jobs, and help middle class families across the country,” Obama said.
The stand-off could damage an already-weak US economy if Congress does not back the deal by the end of the year, leaving Americans facing a massive tax increase at the start of 2011, when the Bush-era tax cuts are due to expire.
The temporary extension sought a middle ground between the two parties. Obama also extracted a concession from Republicans to extend jobless benefits for the unemployed, but conceded to conservatives’ demands to virtually abolish the estate tax, a levy on property of the deceased that is passed on to family members.
Democrats in the House were threatening to amend the deal by keeping the estate tax alive for wealthier households.