The House voted Tuesday night 257 to 167 to pass legislation that prevents tax rates from rising on households making under $450,000 and delays for two months scheduled across-the-board spending cuts that would have started Wednesday.
- The legislation now goes to President Obama, who is expected to sign it into law.
- Under the measure, income tax rates will rise on individuals making more than $400,000 and families making more than $450,000; the Alternative Minimum Tax is permanently indexed for inflation and the estate tax rises to 40 percent from its current 35 percent level, with the first $5 million in assets exempted.
- The legislation is the product of months of intense negotiations between the White House and Congress. Its passage averts a combination of automatic spending cuts and tax hikes that could have caused another recession.