The House Wednesday passed a broad package of tax cuts that expired a year ago, but the legislation is merely a short-term fix that will expire at the end of the year.
The 378-46 vote sends the package to the U.S. Senate, where Democrats on Wednesday continued to work behind closed doors to construct a tax deal that would last longer and perhaps make some of the cuts permanent.
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It’s likely that the Senate will clear the House plan for President Obama’s signature, rather than take up a new bill, aides told the Washington Examiner.
Lawmakers in both chambers were close to broader deal, but it was scuttled after President Obama threatened to veto the proposal because it would have made tax cuts permanent for businesses and not lower-income individuals.
The House-passed bill comes with a $42 billion price tag and would extend for 2014 more than 50 tax cuts, including those for business research and development and equipment purchases, as well as renewable energy. The legislation also restored a variety of tax breaks for individuals, including the popular sales tax deduction.
Republicans praised the passage of the bill, saying it would provide businesses with some stability as they prepare to file their 2014 taxes, but they criticized Obama for stopping the broader deal.
“I am disappointed the White House blocked a bipartisan, permanent solution that would have given businesses and their employees the certainty they need to grow and hire,” House Speaker John Boehner said.
The bill could be the last stopgap move to revive the tax breaks because Republicans, who will control both the House and Senate next year, aim to reform the entire tax code beginning in 2015.
“The bill before us today is also a manifestation of the dysfunction in Washington and the president and Senate Democrats’ unwillingness to work with House Republicans to move us away from the existing broken tax system and the final list of provisions are a byproduct of last minute political brinksmanship by the White House,” said House Financial Services Committee Chairman Jeb Hensarling, R-Texas.
