US House votes to keep tax cuts for middle class | WPN World People News

The US House of Representatives has decided to extend tax cuts for middle class Americans.

The House passed the bill that keeps tax rates low for Americans making less than $200,000.

Wealthier Americans will be cut out of the rate reduction.

The Democratic-led bill is expected to fail in the Senate where Republicans favour low rates for all taxpayers, even if it means adding billions of dollars to US budget deficits.

Rates favouring wealthier taxpayers were enacted by President George W Bush and Republican members in 2001 and 2003.

The tax cuts for all Americans had been due to expire at the end of this year.

Democratic House members said the new bill would extend the lower tax rates for individuals making less than $200,000 a year and for households making less than $250,000 a year, hopefully increasing the amount of money Americans have available to spend.

Source: Europe News.Net