Tax Bill Overcomes Objections, Heads to Obama

Washington, DC, Dec. 17, 2010 -- A bill extending the Bush era tax cuts for two years, as well as unemployment benefits, passed the House late last night and head's to President Obama for his signature.

The measure would extend tax cuts for families at every income level, renew jobless benefits for the long-term unemployed and enact a new one-year cut in Social Security taxes that would benefit nearly every worker who is one someone's payroll.

It would also provide a two-year extension of the federal research and development tax credit, as well as an extension of a measure allowing businesses to write off equipment expenses.

The House gave final approval to the measure just before midnight Thursday, overcoming an attempt by Democrats who wanted to impose a higher estate tax than the one Obama agreed to.

The vote was 277-148, with each party contributing an almost identical number of votes in favor (the Democrats, 139 and the Republicans, 138).

The plan includes an estate tax that would allow the first $10 million of a couple's estate to pass to heirs without taxation. The balance would be subject to a 35% tax rate.

Many House Democrats wanted a higher estate tax, one that would allow couples to pass only $7 million tax-free, taxing anything above that amount at a 45% rate.