Congress approves tax-cut bill

WASHINGTON - Acting with uncommon speed, Congress sent President Barack Obama sweeping, bipartisan legislation late Thursday to avoid a Jan. 1 spike in income taxes for millions and renew jobless benefits for victims of the worst recession in 80 years.

The measure also will cut Social Security taxes for nearly every wage-earner and pump billions of dollars into the still-sluggish economy. The 277-148 vote came less than 24 hours after the Senate cleared the bill, 81-19.

The legislation was the result of a reach across party lines between Obama and top Republicans in Congress - stubborn adversaries during two years of political combat that ended when the GOP emerged the undisputed winner in midterm elections on Nov. 2.

Rep. Ginny Brown-Waite (R-Fla.) called it "a bipartisan moment of clarity" as the House moved toward a vote.

After forcing a delay in the House early in the day, Democratic critics settled for a separate vote in their bid to roll back an estate tax provision they attacked as a giveaway to the very rich. They conceded they were unlikely to prevail, and conceded the measure would pass unchanged.

"The president will be able to sign it as soon as he likes," said Rep. Rob Andrews of New Jersey, who added later on the House floor he would support "an imperfect bill" in hopes of stimulating job creation.

The Senate passed the legislation Wednesday.

House Republicans who will move into powerful posts when the GOP takes control in January urged passage of the bill.

Rep. Eric Cantor of Virginia, in line to become majority leader, said the measure, while not perfect, marked a "first step" toward economic recovery.

Democrats, largely marginalized in the negotiations leading to the bill, emphasized their unhappiness with Obama.

"We stand today with only one choice: Pay the ransom now or pay more ransom later," said Rep. Brad Sherman of California. "This is not a place Democrats want to be. But, ultimately, it is better to pay the ransom today than to watch the president pay even more, and I think he'd be willing to pay a bit more next month."

Policy differences aside, the legislation was approved an astonishingly quick 10 days after the president announced at the White House he had agreed on a framework with Republicans.

With the economy performing poorly and a year-end tax increase looming, there were none of the congressional hearings that normally precede debate on major legislation, and few if any complaints that lawmakers had not had enough time to review the legislation.

The bill provides a two-year extension of tax cuts enacted when George W. Bush was president, avoiding an increase at all income levels that would otherwise occur on New Year's Day.

It would also renew benefits for the long-term unemployed, and enact a reduction in Social Security taxes for 2011 that would amount to $1,000 for an individual earning $50,000 a year. The bill's cost, $858 billion over two years, would be tacked on to the federal deficit, a sore spot for many in both parties.