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House votes to let Bush-era tax cuts expire

December 2, 2010 12:00:00 AM PST
The House voted Thursday to let Bush-era tax cuts expire even though negotiators continue to work on a deal that would extend tax cuts for everyone.

The Bush-era tax cuts are set to expire at the end of the year. The two parties disagree on whether the nation's richest families should receive the cuts.

President Barack Obama and most Democrats want them extended to any couple earning $250,000 or less, but Republicans want to make them permanent for everyone.

Taxes will go up for taxpayers at every income level if Congress does not act fast.

The White House has indicated that there could be a possible compromise that would extend all the tax cuts for up to three years for everyone, including the wealthy.

Senate Republican leader Mitch McConnell of Kentucky has indicated he is open to a temporary extension of all the tax cuts.

Treasury Secretary Timothy Geithner and White House Budget Director Jacob Lew continued talks on Thursday with a small group of lawmakers from both parties to negotiate a deal on tax cuts, even as the House votes on the Democratic plan.

Some lawmakers are concerned that the House vote will undermine negotiation efforts.

The Associated Press Contributed to this report.