AC

The House of Representatives on Wednesday rejected a bill passed by the Senate that would extend current income tax rates to families earning less than $250,000 per year, and is expected to pass a separate measure extending tax rates for all incomes in its place. Nineteen Democrats joined Republicans in voting against Democratic plan passed last week in the upper chamber. The vote sets the stage for a battle over extending the tax rates set during George W. Bush's presidency that likely won't be  resolved until after the November elections in a lame-duck session. If no action is taken, taxes on all income brackets will automatically increase on January 1, 2013. The White House has vowed that President Barack Obama would veto a bill that extends tax rates on incomes over $250,000.