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Middle-Class Tax Cut Extensions Expected to Stay on Hold Until Fall


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Congressional consideration of an extension of $3 trillion in expiring tax cuts is likely to be put off until after the August recess, White House spokesman Robert Gibbs told reporters July 12.
President Obama has called on Congress to extend all of the 2001 and 2003 tax cuts for households earning less than $200,000 per year ($250,000 for married couples) and House Ways and Means Committee Chairman Sander Levin (D-Mich.) has been planning to bring the legislation to the floor ahead of the August recess, but legislative action in the Senate has been slow.
The Senate is currently working on passage of a small business tax bill (H.R. 5297), and a one-year extension of $32 billion in tax breaks in H.R. 4213 stalled at the start of the month.
Gibbs said he expects the debate over which of the 2001 and 2003 tax cuts should be extended should begin prior to the scheduled Dec. 1 release of a report from a fiscal commission created by President Obama to offer suggestions about how to reduce long-term budget deficits.

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