The House of Representatives will vote soon on whether to extend temporary tax breaks for another year, according to the Associated Press (AP)and Yahoo! News.
According to the AP, the tax breaks, which expired at the end of last year, would affect both small businesses and large corporations, as well as teachers who pay for school supplies themselves, commuters who take public transportation, and people who live in states without a state income tax, among others. The breaks would only be extended until the end of the year, which would be long enough for those benefiting from the cuts to claim them on their 2014 tax returns.
President Obama threatened to veto a permanent tax break deal that was being discussed last week between House Republicans and Senate Democrats, causing the two sides to go back to the drawing board. The president’s veto threat was reportedly made because the emerging bill included too many tax breaks for large corporations. The administration says it is still in favor of the passage of a permanent tax break bill.
Even in Congress extends the breaks, the breaks will expire once the calendar flips to 2015, potentially setting up a standoff between the White House and the Republican-controlled Congress over more permanent breaks and a possible restructuring of the U.S. tax code.
On Tuesday, Rep. Paul Ryan (R-Wisconsin) and Rep. Kevin McCarthy (R-California) both said the bill would pass in the House by the end of this week.