Obama Signs Tax Deal Into Law

UPDATE (4:30 PM) — President Obama signed the legislation into law on Friday. In brief remarks before the signing, Obama said extending the Bush tax cuts will “protect the middle class, will grow our economy and will create jobs.” Obama also thanked Senate Republican Leader Mitch McConnell (R-Ky.) for helping negotiate the deal.

WASHINGTON — The House voted 277 to 148 Thursday night to approve of a tax package aimed at extending the Bush era tax cuts for two years and prolonging unemployment benefits for 13 months.

Although the package sailed through the Senate earlier this week, there were doubts over whether it would make it through the House. Progressive members of the Democratic party balked at provisions that would extend the Bush era tax cuts for the wealthiest Americans and called for an amendment that would alter the package’s language on the estate tax.

The amendment, which would have applied the estate tax to those who have over $3.5 million as opposed to those with over $5 million in the Senate version, ultimately failed to find support, ending with a 194-233 vote.

The package was a compromise forged between the White House and congressional Republicans after the GOP refused to pass any extension of the tax cuts that did not apply to all Americans. In addition to the 13 month extension for unemployment aid sought by the White House, the deal provides a series of tax breaks, including a small payroll tax deduction. It will now head to the President’s desk to be signed.

Correspondent Geoff Holtzman contributed to this report.