The US Congress passed a $70 billion tax cut package on Thursday that extends lower rates for investors, giving President George W. Bush a badly needed victory at a time of slumping popularity.
The Republican-led Senate passed the tax cut bill on a mostly party-line vote of 54-44, over the objections of Democrats who said it was skewed to favour the wealthy. Three Republicans broke ranks and voted against the bill, while three Democrats voted in favor.
The US House of Representatives acted on Wednesday and the bill now goes to Bush, who is expected to sign the measure with great fanfare.
Bush made tax cuts a central plank of his presidency and passage of the bill is a rare victory for a leader who is seeing his popularity plummet in public opinion polls. He has enjoyed few wins in Congress since his proposed Social Security overhaul was derailed last year.
"This legislation prevents an enormous tax hike that the American people do not want and would not welcome. The bill will extend policies that have helped our economy flourish," Bush said in a statement. "I look forward to signing this important legislation into law."
Bush is looking to revive support for Republicans before congressional elections in November and pointing to strong economic growth and a stock market on the verge of reaching an all-time high as proof his tax cuts are working.
But Democrats who opposed the bill, the result of months of negotiations between Senate and House Republicans, said negotiators left out popular tax breaks for individuals and businesses that had been included in the original Senate bill.