The backroom deal struck by President Barack Obama and the Republican leadership to extend tax cuts for working Americans and the wealthy at a price of nearly $1 trillion, sailed through the U.S. Senate on Wednesday.
In a rare show of bi-partisan support, the legislation passed the Senate in a 81 to 19 vote.
The legislation now heads to the House where many Democrats are strongly opposed to measures which favor the wealthy, including the odious estate tax that they would like to toughen.
Mr. Obama, learning of the bill’s passage through the Senate, urged members of the House to approve the bill “as soon as possible.”
“This vote brings us one step closer to ensuring that middle class families across the country won’t have to worry about a massive tax hike at the end of the year,” Mr. Obama said. “It would offer hope to millions of Americans who are out of work that they won’t suddenly find themselves without the unemployment insurance they need to make ends meet as they fight to find a job.
The President added that he was aware that not every Member of Congress liked “every piece of this bill” and that he too, was opposed to some of its provisions.
Debate on the tax-cut deal will begin on Thursday in the House, where angry Democrats are likely to pass the bill, perhaps with a tougher provision on the estate tax.
The legislation, among other measures, aims to extend the Bush tax cuts granted in 2001, for a further period of two years and comes with a price tag of $858 billion. Despite this, the Republicans have been eerily silent on the further ballooning of the budget deficit which currently stands at $1.3 trillion.
Meanwhile, Mr. Obama met today with America’s top business leaders to discuss ways to spur hiring, put Americans back to work and move the economy forward.
A statement from the White House said that issues for discussion included, broad-based tax reform, a balanced approach to regulation aimed at promoting growth and ideas that help encourage businesses to invest in America and the creation of American jobs.
The private sector is flush with cash and holding some $2 trillion on their books.
