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In a
party line vote, the US Senate late yesterday passed a
$350-billion tax cut that would temporarily eliminate taxes on
stock dividends - the central tenet of a White House economic
stimulus plan.
The tax cuts, passed by a Senate vote of 51 to 49, would be spread
over the next decade.
US President George W Bush had originally sought $726-billion in
tax cuts - more than twice what the Senate ultimately
approved.
Still, the vote ensures a massive tax cut for the White House just
as the president begins revving up his 2004 presidential
re-election campaign.
Three Democrats, Senators Ben Nelson of Nebraska, Evan Bayh of
Indiana and Zell Miller of Georgia, voted with the Republican
majority in supporting the tax cuts, offsetting the three
Republicans - John McCain of Arizona, Olympia Snowe of Maine and
Lincoln Chafee of Rhode Island - who opposed the bill.
Earlier in the evening, the Senate approved a key element of the
White House economic stimulus plan, approving by a vote of 51 to 50
an amendment to suspend for three years the double taxation on
stock dividends, with US Vice President Dick Cheney casting the
tie-breaking vote.
The stock dividend taxes would be suspended in 2004, 2005 and 2006
and would be restored in 2007. Bush had originally sought complete
elimination of the double taxation on dividends.
In a statement issued shortly after midnight, Bush commended the
Senate for passing the Jobs and Growth package.
"By including a measure to completely abolish the double taxation
of dividends, the Senate has demonstrated that they are committed
to creating as many jobs as possible for US workers," Bush
said.
The lower chamber of the US legislature, the House of
Representatives, last week adopted a $550-billion tax cut,
rejecting Bush's proposal to eliminate dividend taxes.
The $200-billion difference between the two tax cut bills must now
be hammered out in conference, when the negotiators for House and
Senate will decided upon a definitive tax cut figure.
"Jobs are on the line and ... I call on Congress to resolve their
differences quickly so that I can sign a bill that will help create
jobs, boost take-home pay and spur economic growth," Bush said in
his statement. – Sapa-AFP.
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