WASHINGTON - The Senate gave final approval Thursday to a $70 billion election-year package of tax cuts that will extend lower rates for investors and also save billions for families with above-average incomes.
The Senate passed the measure by a 54-44 vote, clearing it for President Bush's signature.
The legislation provides a two-year extension of the reduced 15 percent tax rate for capital gains and dividends, currently set to expire at the end of 2008.
It also will extend for one year recent changes to the alternative minimum tax — originally aimed at making sure the wealthy pay at least some taxes — to prevent it from hitting more upper middle-income families.
The bill also will extend for two years provisions sought by small businesses to let them write off up to $100,000 in investments in equipment and other expenses.
The debate followed partisan lines, with Republicans eagerly crediting the tax cuts, first enacted in 2003, with a surging economy, millions of new jobs and booming tax revenues. Democrats overwhelmingly opposed the bill, saying its tax cuts on capital gains and dividends will flow mostly to wealthy.
Just three Republicans — Olympia J. Snowe of Maine, Lincoln Chafee of Rhode Island and George Voinovich of Ohio — voted against the bill. Democrats Ben Nelson of Nebraska, Bill Nelson of Florida and Mark Pryor of Arkansas voted in favor.
Interesting how only three Republicans voted against this bill--both Snow and Chafee are moderate Republicans. And I would imagine that the Democrats who voted for it are conservative Democrats.
But this tax cut isn't all that I want to talk about here. Check out this little story that was also on Yahoo News:
WASHINGTON - The House on Thursday approved a $512.9 billion military bill that addresses a host of concerns arising from wars in Iraq and Afghanistan, from combatting makeshift roadside bombs to equipping more vehicles and troops with armor.
Passed on a 396-31 vote, the measure includes a plan to spend $50 billion for the first part of next year's war costs.
The Senate Armed Services Committee has approved its version of the bill. It also envisions $50 billion for wars in Iraq and Afghanistan. If approved, the measure would push to over $400 billion the cost of the Iraq and Afghan wars and global efforts against terrorism since the Sept. 11, 2001, attacks, according to the Congressional Research Service.
So does this make any sense to you? The House approved a $500 billion dollar military bill, with a plan to spend $50 billion for the first part of next year's war costs, while at the same time, both houses of Congress has approved of a $70 billion tax cut. It is like we're emptying the U.S. Treasury's piggy bank to pay for these tax cuts, while at the same time, charging these wars in Iraq, Afghanistan, and possibly Iran, on the national credit card. I'm getting the impression that we're living through the anti-Great Society years of President Bush--as compared to the Great Society programs of Lyndon Johnson. During the Great Society years, President Lyndon Johnson created a number of federal government programs to fight against anti-poverty, while also holding down taxes, and escalating the Vietnam War. Now we have the anti-Great Society programs of President Bush, where Bush cuts taxes to corporations and rich elites, creates new federal programs for domestic spying and supposedly fighting terrorism, while also starting his own wars in Iraq, Afghanistan, and possibly Iran. Remember what happened when Lyndon Johnson tried to have both his Great Society programs, and the Vietnam War? How about ten years of stagflation during the mid 1970s to 1908s?
When is stagflation going to destroy the Bush administration's economy?
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