House Passes Tax-Cut Bill

Legislation to extend Bush-era tax cuts was approved by the House of Representatives late Thursday.
By Michael Baron ,

WASHINGTON (

TheStreet

) -- The House of Representatives cleared legislation late Thursday to extend the Bush-era tax cuts.

The 277-148 vote came the day after the Senate cleared the bill, 81-19.

Democrats hostile to President Obama's compromise with the Republicans on issues like the extension of cuts for the wealthy and the details of the estate tax made their feelings known.

"This bill is largely a mishmash of rejected Republican ideas that cost too much to accomplish too little," said Rep. Lloyd Doggett, a Democrat from Texas, the

Associated Press

reported. "The Republicans will rule the House for the next two years; let's not give them an early start today."

A vote had been expected to take place Thursday afternoon, but the

Wall Street Journal

reported it was postponed because of the complaints of Democrats about the plans of party leaders to limit the amount of amendments that could be added to the bill to express dissent.

President Obama hammered out the tax-cut compromise with the Republicans last week. The legislation extends the Bush-era cuts for all Americans for another two years, and also includes a temporary 2% reduction in the FICA payroll tax for Social Security, continues expiring unemployment benefits, and provides new tax breaks for small businesses.

After forcing the delay earlier Thursday, Democratic critics settled for a separate vote in their bid to toughen an estate tax provision they attacked as a giveaway to the very rich. They were defeated, 233-194, with one vote of "present."

Treasury Secretary Tim Geithner, in a statement, said the bill was "good for growth, good for jobs, good for working and middle-class families, and good for businesses looking to invest and expand their work force."

--

Written by Michael Baron in New York.

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