US lawmakers coming back from the summer break are facing a dilemma on tax cuts which will expire at year end, as the economy appears to be going ahead of the upcoming congress elections.

A raging war regarding taxes is probably going on with President Barack Obama's administration about the less extension of tax cuts for the middle class and Republicans looking forward to extend the cuts under the previous president George W. Bush.

The Bush administration had had cuts reducing trillions of dollars in taxes in the last 10 years, according to budget rules their expiry is due at 2010-end, leading to an increase in various taxes if Congress is inactive.

According to the Congressional Budget Office estimates, if the original tax-cuts of Bush’s administration is extended, it would cost 2.56 trillion dollars in the next 10 years, which will be a disaster for the deficit.

So decision must be made by lawmakers if they will allow or not the breaks to expire. Obama wants to put the economy back on track, as well as control deficits. According to economists, with the economy showing increasing signs of softening, lawmakers are less likely to raise the taxes.