Senate approves tax cut deal; House Dems weigh amending estate tax
Bill now awaits action by the House
By Lori Montgomery and Shailagh Murray
From The Washington Post
A sweeping tax package negotiated by the White House and Republican leaders sailed through the Senate on a 81-19 vote and now awaits action by the House as early as Thursday.
The Senate vote represented a rare moment of bipartisanship and underscored the depth of concern among lawmakers in both parties about the pace of the economic recovery. The legislation would extend for two years the income-tax cuts enacted 10 years ago under President George W. Bush. The cuts are set to expire on New Year’s Eve. But the package also includes a variety of measures aimed at spurring new hiring and consumer spending.
The stimulus-related provisions include a one-year reduction in the payroll tax rate for individuals, to 4.2 percent from 6.2 percent; an expensing break that would allow businesses to write off new equipment purchases in the 2011 tax year; and continued funding for an emergency program that provides up to 99 weeks of benefits for jobless workers. Additional tax provisions would target businesses and individuals in narrower groups.
Prospects for House passage appeared to be brightening Wednesday after an initially poor reception, but House Democratic leaders said that liberals continue to insist on changes to the estate-tax provision in the bill.
