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January 01, 2013 05:03 PM

Tax Relief Extension Waiting For House Vote

Following hours of meetings, House Republicans are taking a break and deciding their next move on whether to approve the Tax Relief Extension Act.  The US Senate overwhelmingly approved a compromise early Tuesday morning.

Now, if the measure passes the House, the US will avoid a fiscal cliff of across-the-board tax increases.

After months of debate, the Senate began voting on the bill in the early morning hours of New Year's Day. The measure would raise taxes by about $600 billion and delay across-the-board automatic spending cuts.

If the bill eventually becomes law, the Bush-era tax cuts will be permanently extended for everyone making less than $400,000 a year and families making less than $450,000 a year.

It extends the child tax credit, earned income tax credit and a tax credit for college tuition.

The unemployed would receive long-term benefits for one year. It also allows a two-percent cut in the payroll tax to lapse, restoring it to 2010 rates.

It also delays more than $100 billion worth of spending cuts for two months that would strike the Pentagon and domestic agencies this week.

Both of South Dakota's Senators voted in favor of it.

Senator Tim Johnson released a statement saying, "The bill I voted for is not perfect, but it will keep tax rates the same for the vast majority of Americans."

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