On Wednesday, the US House of Representatives voted to extend the $17 Billion in tax breaks for the country's big businesses, which was due to end on December 31, and the funds for the same will be generated by imposing a new tax on fund managers' compensation and strict penalties on foreign banks that have helped rich Americans hide their assets overseas.

Also, the new package comes inclusive of help for retailers by pulling down the tax depreciation period for renovated stores and extension of a research tax credit for business.

A vote of 241-181 has managed to extend the deadline of the tax breaks by at least a year.

Republicans had mostly voted against the Democrat-led set of new rules, mainly to protest against a new tax on "carried interest earned by hedge fund and private equity fund managers". Under the change, the tax would now be set at 35% of the compensation earned as opposed to the current figure of 15%.

The proposal, which is set to raise at least $23 Billion over the coming 10 years, has been strongly backed by President Obama. Republicans are calling the new levy a "tax on investment".