Senate Passes Tax Bill 81-19; House to Vote Thursday
- Posted on December 15, 2010 at 1:50pm by
Jonathon M. Seidl
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WASHINGTON (AP) — The Senate Wednesday overwhelmingly passed a sweeping tax package that would save millions of Americans thousands of dollars in higher taxes while also reducing their Social Security taxes and extending jobless benefits.
The $858 billion package now goes to the House, where many Democrats are unhappy with a provision that allows estates as large as $10 million to pass to heirs tax-free. Democratic leaders, however, say they expect the bill to ultimately pass and become law.
A wide array of tax cuts enacted under President George W. Bush is scheduled to expire on Jan. 1 – just two weeks away – affecting taxpayers at every income level. The bill passed by the Senate, 81-19, would extend them for two years.
President Barack Obama urged quick action in the House.
“I know there are different aspects of this plan to which members of Congress on both sides of the aisle object. That’s the nature of compromise,” the president said. “But we worked to negotiate an agreement that’s a win for middle-class families and a win for our economy, and we can’t afford to let it fall victim to either delay or defeat.”
House Democratic leaders said they expect to vote on the bill Thursday.
Obama negotiated the package with Senate Republicans, and then administration officials worked for days to persuade congressional Democrats to support it, signaling a possible blueprint for future legislation. Because of November’s election victories, Republicans will take control of the House in January and gain seats in the Senate.
“Middle class families need a boost in this economy, and that is exactly what this plan gives them,” said Senate Majority Leader Harry Reid, D-Nev. “It is not perfect, but it will create 2 million jobs, cut taxes for middle class families and small businesses, and ensure that Americans who are still looking for work will continue to have the safety net they rely on to make ends meet.”
The bill would extend expiring tax cuts at every income level. It also would renew a program of jobless benefits for the long-term unemployed that is due to lapse, and enact a one-year cut in Social Security taxes. The bill’s cost, $858 billion, would be added to the deficit.
“Opposing this bill is tantamount to supporting massive tax increases that threatens our economic future,” said Sen. Orrin Hatch, R-Utah. “Allowing middle-class families, small businesses and investors to keep more of what they earn, while denying Washington hundreds of billions in new tax revenue to spend, is the right thing to do.”
Other Senate Republicans, however, balked at the price tag, noting that Obama’s deficit commission recently outlined the massive fiscal problems facing the nation.
“The American people are going to be looking, and they’re going to say, does the Senate get it? Do they understand the severity and the urgency of the problems that face our fiscal future?” Sen. Tom Coburn, R-Okla., said Wednesday.
At the insistence of Republicans, the plan includes a more generous estate tax provision: The first $10 million of a couple’s estate could pass to heirs without taxation. The balance would be subject to a 35 percent tax rate.
The lower estate tax infuriated some Democrats who were already unhappy with Obama for agreeing to extend tax cuts for individuals making more than $200,000 and couples making more than $250,000.
“This administration fights for nothing,” said Rep. David Wu, D-Ore.
The estate tax was repealed for 2010. But under current law, it is scheduled to return next year with a top rate of 55 percent on the portion of estates above $1 million – $2 million for couples.
House Democratic leaders want to bring back the 2009 estate tax levels. That year, individuals could pass $3.5 million to their heirs, tax-free. Couples could pass $7 million, with a little tax planning, and the balance was taxed at a top rate of 45 percent.
House Democrats said they are considering a vote to impose the higher estate tax, perhaps as an amendment to the package. But even critics of the lower estate tax say they expect the package to be enacted without changes.
“Let’s find out if Republicans really want to jeopardize income tax, payroll tax and estate tax relief for every American in order to provide a budget-busting bonanza to the country’s richest estates,” Rep. Chris Van Hollen, D-Md., wrote in an op-ed in Wednesday’s Washington Post. “House Democrats think this trade-off should be debated and voted on in the light of day.”
Rep. Bill Pascrell Jr., D-N.J., said, “We can jump up and down all we want about the higher-end estate taxes, and I don‘t think anything’s going to change because the Senate isn’t going to change it.”
Thirty-one members of the conservative Blue Dog Democrats sent a letter to House Speaker Nancy Pelosi urging quick passage of the bill.
“It is time for us to put aside the partisan talking points and accomplish what the American people sent us here to do,” said the letter.
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hempstead1944
Posted on December 16, 2010 at 9:14amHere it is….short and simple, I live in NC and voted for Richard Burr. He betrayed his campaign promise by voting for this bill. Provided I live long enough, I will campaign and vote against this lying SOB…..if he has the nerve to run again.
Report Post »kokoro
Posted on December 16, 2010 at 1:42amIf the congress is there by our vote, they are our employees…shouldn’t we control their salaries and benefits?
Report Post »dontbotherme
Posted on December 15, 2010 at 11:51pmI hope the house votes no tomorrow. Another 2000 page bill that has to be passed so we can know what’s in it. I’m so sick of these people. I live in Illinois. I knew Kirk was lying when I was at a town hall meeting before he was voted in as the republican candidate. No one believed me. These RINOS & socialists (ie: democrats) have screwed us again.
Report Post »APatriotFirst
Posted on December 15, 2010 at 4:51pmLet it expire and take it up in Jan, 2011. We can all pay a little more for a month. Then let the conservatives write the bill. If there are any conservatives.
Report Post »va_magoo
Posted on December 15, 2010 at 3:39pmHow does keeping current rates and not stealing dead people’s money, COST the Federal GOVT (us taxpayers) 800 billion? Do these people really, really believe the TEA Party is going to remain peaceful much longer? Glenn is right, the revolution has begun……..
Report Post »Hefsmaster
Posted on December 15, 2010 at 3:14pmWhat a surprise. Another “top-down” moment.
Report Post »BarbieBabe
Posted on December 15, 2010 at 3:01pmJust contacted Kirk and Durbin….Durbin I expected to vote this through. He is Socialist Progressive to the bone. I didn’t expect Kirk to do it though. I guess when you are from Illinois you expect to get this kind of legislators. Deaf, Blind & Dumb… Now we will be calling Durbin & Kirk Dumb & Dumber
Report Post »To bad we can’t put them all on a bus and send them home. Everyone, pray for an ice storm.
Hopefully the House will put an end to it. PDQ
nobama12
Posted on December 15, 2010 at 2:53pm@LEFTFIGHTER – Rush said the same thing today on his show. What can be done to reverse this mess?
Report Post »@leftfighter
Posted on December 15, 2010 at 3:04pmYes. Challenge in court.
I caught onto what Rush’s direction slightly before he actually said it, but that’s where I got my info. I researched it and he’s 100% correct. Again.
Report Post »cessna152
Posted on December 15, 2010 at 3:06pmReverse? I will not mention “how to” in public.
Report Post »@leftfighter
Posted on December 15, 2010 at 3:07pmThe rub is, why did the 19 opposed even vote on this mess? If I were a Senator, I wouldn’t have voted based upon illegitimacy of the bill.
No yea, no nay, no present, no vote period.
Report Post »snowleopard3200 {mix art}
Posted on December 15, 2010 at 4:10pm@Leftfighter
Abstaining from the vote is the moral sameness of supporting the vote; you lend support by not taking a stand against it – not standing for what is right and constitutional.
Report Post »@leftfighter
Posted on December 15, 2010 at 2:46pm81 Senators (meaning many Republicans along with Democrats) just violated their oath to the Constitution by passing a tax bil before the House even sent it to them.
Article 1, Section 7, Clause 1: All Bills for raising Revenue shall originate in the House of Representatives; but the Senate may propose or concur with Amendments as on other Bills.
http://www.house.gov/house/Constitution/Constitution.html
http://www.usconstitution.net/xconst_A1Sec7.html
Somebody please take note of the GOP names, so we can remember who violated their oath and make sure to get them out next chance we get.
Report Post »@leftfighter
Posted on December 15, 2010 at 2:48pmOn a related note, I’m just now realizing that if SCotUS buys the “It’s a tax” argument on Obamacare, it must then rule on the Constitutionality of the Senate originating a revenue bill.
As per above, Article 1, Section 7, “All Bills for raising Revenue shall originate in the House of Representatives,” Obamacare was originated in the Senate. Unconstitutional.
Report Post »LittleMac
Posted on December 15, 2010 at 3:24pmIs there a penalty for anyone who votes for a blatantly unconstitutional bill?
Report Post »Or do they fall back upon claiming that a bill is not unconstitutional until the supreme court says it is?
snowleopard3200 {mix art}
Posted on December 15, 2010 at 4:08pm@Leftfighter
Indeed, that is an incredible argument and true. I missed the connection of the Obama care abomination starting in the senate. But remember they said at the time, it was not a tax. Now that they have, we need to make sure that the version of the bill quoted from is the one of the Senate and not of the House; for if the administration makes the argument based on the House bill version, then technically (and wildly distorted) a basis could be made (unbelievably) for it having been a tax coming from the House as required.
Personally, I find the whole thing evil and unconstitutional across the board with any administration argument specious at best, downright lying and dishonorable at worst (and normal), I only present the above info for the dingbat extremists out there who will use a similar argument without understanding that they are wrong.
Report Post »5412
Posted on December 15, 2010 at 2:45pmHere is the part that galls me. Got the following email from a friend in IL.
Looks like Kirk is the new “Olympia Snow” of the Illinois Republican Party!!! What else did we expect of him?
Six Republican senators voted on Wednesday against an amendment to permanently extend the expiring Bush-era tax cuts.
A group of GOP centrists voted down a measure sought by Sen. Jim DeMint (R-S.C.) to set in stone current tax rates.
Sens. Scott Brown (Mass.), Susan Collins (Maine), Mark Kirk (Ill.), Lisa Murkowski (Alaska), Olympia Snowe (Maine) and George Voinovich (Ohio) all bucked DeMint on a procedural vote to suspend Senate rules and allow for the amendment.
Republican Party has a way to go to get the RINO’s to understand they are next on the chopping block.
Report Post »untameable-kate
Posted on December 15, 2010 at 3:15pmWhy do these people run as republicans when they clearly are not. The registered ‘republicans’ who keep voting these a-holes in need their azzes kicked.
Report Post »GeauxAlready
Posted on December 15, 2010 at 2:34pmCan you say we’re screwed?
Report Post »NoRoomForSocialismHere
Posted on December 15, 2010 at 2:55pmYES, the Progressive Socialist RINOs have always been after OUR Social Security. They call it an entitlement, as do some of the FOX boys and girls who are supposed to be on OUR side. They are going back to their Bush RINO ways of 2000-2008. Over a 2 percent cut, which means OUR FUND will be raped again and they have not paid us back for all of the money they took out of it to finance PORK and keep corporate taxes low. Yes, they use OUR fund to keep from raising taxes on themselves; it is like free money to both sides.
TIME TO END BOTH PARTIES and replace the Constitution, long live the TEA Party Patriots and no not Dick Armeys RINO bunch!
The RINOs don’t like middle class wage earners, borders, and tariffs on foreign goods because they come from the shops they own in China, Mexico, and India. They do not have empathy for chained up child labor. They will do anything to reduce OUR wages and benefits so they can become billionaires instead of just plain mult-millionaires.
If they mess with me any more, I will join the Communist so I can put them on the firing line.
Report Post »snowleopard3200 {mix art}
Posted on December 15, 2010 at 4:03pmI think that phrase is an understatement indeed.
One thing occured to me today about the Social Security tax cut…when it expires after the 2011 year, this will be just in time for the starting of the 2012 election cycle; and I figure the Progressives and the Democrats will be howling about how the Republicans and Conservatives have raped and destroyed the Social Security Trust Fund (even though there is nothing but IOU’s in it) and that there will be needed ‘drastic measures’ to rectify the problem
Just watch and see if this does not happen.
Report Post »CatB
Posted on December 15, 2010 at 4:16pmUnconstitutional …– all taxes/spending must originate in the PEOPLE’s HOUSE!
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