House passes middle-class tax bill with three Republicans supporting

House Republicans criticized the move by Democratic leaders to hold the vote on the bill that doesn’t include an extension of tax cuts for all taxpayers, including those making $250,000 a year. 

House Republican Leader John Boehner (Ohio) called the vote “chicken crap” as lawmakers from both parties and both sides of the Capitol work with the White House on a compromise tax bill. 

The measure passed Thursday permanently extends income tax breaks for households making $250,000 a year or less and permanently lowers the capital gains and dividends rates for the same income group at a cost of nearly $100 billion over 10 years. 

Under the bill, income tax rates along with capital gains and dividends rates would increase to pre-2003 and pre-2001 levels for those in higher tax brackets. Capital gains rate would revert to the pre-tax cut rate of 20 percent and the dividend rate would revert to the pre-tax cut ordinary income rates.

The measure also extends the child tax credit, marriage penalty relief, the earned income tax credit, deduction of student loan interest and other education incentives.

The bill also would allow small businesses to write off equipment costs up to $125,000 that would be phased out once capital expenditures exceed $500,000 at a cost of $25.4 billion over 10 years.