US House votes to keep Bush middle class tax cuts

Democrats say the US cannot afford to keep tax rates low for the wealthy at a time of budget deficits
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The US House of Representatives has passed a bill that would extend tax cuts for middle-class Americans while letting them lapse for the wealthy.

The Democratic-led bill keeps tax rates low for Americans making less than $200,000 (£128,122) a year.

Those rates were enacted by President George W Bush and the Republicans in 2001 and 2003.

The bill is expected to fail in the Senate, where Republicans favour low rates for all taxpayers.

The tax cuts are due to expire at the end of this year.

Rates for all US taxpayers would then rise, potentially hindering the country's fragile economic recovery by decreasing the amount of money Americans have available to spend.

Negotiations on tax issues continue between the White House and Republican leaders, following a bipartisan summit on Tuesday.

Recession fears
The bill passed by 234 votes to 188 in the House would permanently extend the lower tax rates for individuals making less than $200,000 a year and for households making less than $250,000 a year.

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The president continues to believe that extending middle-class tax cuts is the most important thing we can do for our economy right now”

Robert Gibbs
White House spokesman
The House measure is expected to fail in the Senate, where the Democrats lack the votes to push it through against Republican opposition.

The Republican Party favours extending the Bush tax cuts for all taxpayers, even though that move would add billions of dollars to US budget deficits.

President Barack Obama favours the House approach, and on Tuesday cited "broad agreement" that taxes on middle-class Americans should not rise on 1 January.

"The president continues to believe that extending middle-class tax cuts is the most important thing we can do for our economy right now and he applauds the House for passing a permanent extension," White House spokesman Robert Gibbs said.

He said negotiations with the Republicans were "ongoing and productive" but that an agreement had not yet been reached.

"Any reports that we are near a deal in the tax cuts negotiations are inaccurate and premature," Mr Gibbs added.

The BBC's Iain Mackenzie in Washington says that allowing the tax cuts for higher earners to lapse would hit the richest 2% of Americans.

Mr Obama's opponents claim those people are the country's job creators and punishing them during a recession would damage the economy, our correspondent says.

Senate leaders are planning a series of votes on tax proposals on Friday, on both Democratic- and Republican-backed measures. None is expected to get the 60 votes needed to pass.

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Green Bay slight favourites to win Super Bowl XLV

SUPER BOWL XLV: Sunday, 6 February at Cowboys Stadium, Arlington, Texas - Watch live on BBC 1, BBC 1 HD and on the BBC Sport website (UK only) from from 2245; listen live on 5 live and 5 live sports extra; full coverage details.

Roethlisberger anticipates 'ultimate' game

Green Bay are slight favourites to win Super Bowl XLV against the Pittsburgh Steelers in Texas on Sunday.
Bookmakers expect the Packers to win by a small margin but the Steelers are playing their third Super Bowl in six years and have a very experienced team.
"Defence is going to be a big factor in this game, and special teams as well," said Packers head coach Mike McCarthy.
"There will definitely be momentum swings. I think it's going to be a heck of a game."
The game brings together two of the most storied franchises in the league both of whom have fanatical fanbases.

STEELERS VS PACKERS HISTORY

1933.........Established.........1919
14...........Head-to-head...........13
6...........Super Bowl wins...........3
Organizers are expecting a record Super Bowl crowd in Cowboys Stadium, breaking the current attendance mark for a Super Bowl of 103,667 when Washington beat Miami in 1983 at the Rose Bowl in California.
However, many fans are experiencing problems getting to Dallas as snow has grounded flights both in Texas, which normally enjoys a temperate climate, and across the United States.
Airlines cancelled more than 700 flights to and from Texas on Friday and although warmer temperatures are forecast for Sunday, snow and ice will still be on the ground when Green Bay and Pittsburgh meet under the retractable roof.
The two teams last met in December 2009 with the Steelers winning 37-36 when quarterback Ben Roethlisberger threw a last second touchdown pass, and the Packers have not beaten Pittsburgh in three attempts since 1995.
The contest marks the first Super Bowl meeting between the Steelers and Packers, who boast nine wins between them.
Roethlisberger is playing in his third Super Bowl and could join an elite group as only the fifth quarterback to have won three or more championships.
The 29-year-old guided the Steelers to victories in in Detroit five years ago and in Tampa, Florida in 2009.
"In Detroit I was overwhelmed," Roethlisberger said.
"Tampa was a little bit better. You hope that you just get a little bit more comfortable with it so you won't have the same jitters that you had the first couple of times.
"This game is going to be awesome. This is the ultimate game with the ultimate two teams playing in it."
In contrast, Green Bay quarterback Aaron Rodgers, 27, is playing in his first Super Bowl.


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'Freezer' unfazed by Super Bowl inexperience

The California native is in his sixth year as a pro, but has only been starter for the Packers over the last three seasons after Green Bay legend Brett Favre finally left the club for good.
"Everybody I talked to this week that's played in this game has talked about just taking deep breaths and getting over the first few plays," he said.
"Pittsburgh have a great defence. They're very well coached. Defensive coach (Dick) LeBeau is one of the greatest coaches this league has ever seen and he gets them prepared every week to play.
"It's going to be a tough challenge for us and we'll be ready."
The NFL has enjoyed several very close Super Bowl fixtures over the past several years and this Sunday's contest is expected to be no different.
Both teams excelled defensively during the regular season, and Sunday's big game will be only the fourth time that the two teams that have conceded the least points during the regular season will face each other in the Super Bowl.
Packers cornerback Charles Woodson, making his first appearance in the Super Bowl since playing for the Oakland Raiders against the Tampa Bay Buccaneers in 2002, thinks the game will be decided by who starts faster.
"Both teams have explosive offences and both teams have great quarterbacks who can make plays in any fashion, running or throwing," he said.

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I'm going to say Aaron Rodgers and his Packers team-mates will be celebrating at the end of what should be an exciting game.
"If you get up on the scoreboard the defence is going to come in and that is how the game will be won."
Both teams will be close to full strength, although Steelers coach Mike Tomlin may have to do without rookie centre Maurkice Pouncey who was injured during the AFC Championship game against the New York Jets.
"I don't know what his chances are. We will give him every opportunity to take part in the game and remain hopeful," Tomlin said.