The U.S. Senate narrowly approved a plan Wednesday to extend the Bush-era middle class tax cuts to all households earning less than $250,000, with Connecticut Independent Joseph I. Lieberman joining Republicans to vote against the plan and Democrat Richard Blumenthal voting with the Democrats.
The measure passed the Senate on a vote of 51-48 and sets the stage for a political showdown next week in the U.S. House of Representatives. It is also expected to become a central issue in the presidential race.
Democrats want to limit the tax cuts, first approved during the presidency of George W. Bush, only to those making less than $250,000. Taxpayers making more than that are within the top 2 percent of income earnings in the country.
Republicans, however, argue the tax cuts should be extended to all Americans.