U.S. House passes middle-class tax cuts

U.S. House on Thursday passed a $145.9 billion package of tax relief to extend three popular middle-class tax cuts, giving President Bush his fourth major tax victory since taking office.

The House approved the proposal 339-65, with many Democrats joining in support of the politically popular measure even though they criticized the Republican-led Congress' refusal to pay for the new tax relief at a time of soaring budget deficits.

The House vote came in the midst of Senate debate on the same bill. The Senate was expected to quickly pass the measure as well, sending it to the president for his signature.

Republicans were eager to pass the legislation needed to extend the tax measures and give Bush a big legislative victory in the closing weeks of his campaign for re-election.

Without action, the three provisions affecting an estimated 94 million Americans would expire at the end of this year. The legislation keeps the per child tax credit at $1,000, retains an expanded 10% income bracket that affects virtually all taxpayers and retains provisions to provide tax relief for married couples.

"The choice is between raising taxes on millions of families and individuals next year or sparing them that tax increase," said Sen. Charles Grassley, R-Iowa, chairman of the Senate Finance Committee. "The president made this a priority, and I hope to have a bill on his desk within days."

Source: Agencies