Bush, GOP prevail on tax-relief bill
Arizona Star ^ | 5-11-06 | Andrew Taylor
Posted on 05/11/2006 7:54:43 AM PDT by SJackson
http://www.freerepublic.com/focus/f-news/1630468/postsWASHINGTON — A bill awarding tax relief to investors and 15 million taxpayers facing the alternative minimum tax passed the House on Wednesday,
giving President Bush and his GOP allies on Capitol Hill a long-sought election year victory. The bill, providing tax cuts worth $70 billion over five years, passed on a 244-185 vote. The Senate was expected to clear the bill for Bush's signature today. 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 would extend, for this 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 debate was divided starkly along partisan lines, with Republicans crediting the tax cuts, first enacted in 2003, with a surging economy, millions of new jobs and booming tax revenues. Democrats countered that the deficit-financed tax cuts are tilted in favor of wealthy investors and that the economic benefits are not as great as advertised. "Our pro-growth policies have helped the economy create more than 5.2 million jobs since August of 2003," Bush said in a statement. "By extending key capital gains and dividends tax relief, the House has taken an important step to continue to help hardworking Americans and to keep our economy strong and growing." Critics, including most Democrats, attacked the tax-rate reductions on dividends and capital gains as being skewed in favor of the rich. They noted that it was the second half of a GOP budget package that began with $39 billion in benefit cuts over five years, many of which came from programs for the poor such as Medicaid. Democrats also cited a joint study by the Urban Institute and the Brookings Institution that shows taxpayers with incomes greater than $1 million per year winning tax cuts of $42,000 under the bill, while families with incomes of $50,000 a year would average a $46 tax cut. Just 15 Democrats joined all but two Republicans in voting for the bill. Passage of the bill is the first step of a two-track strategy for advancing the GOP's election-year tax-cut agenda. The first, the $70 billion tax bill focused on investor tax breaks and alternative minimum tax relief, can advance under special rules blocking Senate Democrats from filibustering it to death. Another bill, which contains up to $30 billion in tax breaks backed by both Republicans and Democrats, will advance later. Those breaks include preserving tax deductions for state and local sales taxes, a tuition tax deduction, a tax break for teachers who buy their own school supplies, and a business research and development tax credit.
1). To: SJackson
"Critics, including most Democrats, attacked the tax-rate reductions on dividends and capital gains as being skewed in favor of the rich. " Same old looney left socialist mantra. You'd think they'd come up with something new. Guess not.
3 posted on 05/11/2006 7:57:10 AM PDT by fatnotlazy
2). To: SJackson
No doubt to be reported in the drive-by-media as just tax cuts for the rich. Grrrr...
4 posted on 05/11/2006 7:57:36 AM PDT by CedarDave (Sleeper trolls are like cicadas - emerge in the heat and contribute nothing but loud annoying noise)
3). To: SJackson
For those who want to read the article. The battle should have been over a permanant tax cut, not simply extending capital gains to the 2011 sunset date.Wow, can't we ever just applaud the President for a good job around here, ever?
6 posted on 05/11/2006 7:58:36 AM PDT by Darkwolf377 (Can't wait for the Dems to close that border and are approving SCOTUS nominees!)
4). To: Darkwolf377
I agree. Great job of President Bush and GOP to get this thru in order to extend the economic boom, a boom with many disgruntled GOP'ers will not credit President Bush for.
10 posted on 05/11/2006 8:08:46 AM PDT by Siena Dreaming
5). To: SJackson
Not bad for a Lame Duck! Pray for W and Our Freedom Fighters
25 posted on 05/11/2006 8:35:30 AM PDT by bray (The only thing lower than Bush' numbers are the press')
:spray:
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