Senate Panel Does Not Extend Tax-Rate Cut .. (Bush takes one more hit)

Senate Panel Does Not Extend Tax-Rate Cut

By Jonathan Weisman
Washington Post Staff Writer
Wednesday, November 16, 2005; A07



Facing a stalemate over one of President Bush's top economic policy goals, the Senate Finance Committee yesterday gave up efforts to extend deep cuts to the tax rate on dividends and capital gains and approved a $60 billion tax measure largely devoted to hurricane relief and tax cuts with bipartisan appeal.

The measure, which could pass the Senate today, marks the latest in a string of legislative setbacks for Bush, who has repeatedly called on Congress to make his first-term tax cuts permanent and has taken particular pride in the 2003 dividends and capital gains tax cuts, which are set to expire in 2008.

The Senate measure diverges sharply from a Ways and Means Committee tax package moving toward a House vote as early as Friday. The House package, which cuts taxes by $70 billion over five years, would extend the dividends and capital gains tax cuts through 2010. It would not extend a measure to mitigate the impact of the alternative minimum tax, which is increasingly snaring the middle class.

Ways and Means Chairman Bill Thomas (R-Calif.) would like to use the political pressure of a rising AMT burden to drive a broad tax-code overhaul. The House and Senate are struggling to complete tax cuts called for in the congressional budget resolution, which would accompany budget-cutting measures. In both chambers, the tax packages cut revenue more than the budget packages slice spending. Democrats and some moderate Republicans question the wisdom of expanding the deficit over the next five years

http://www.washingtonpost.com/wp-dyn/content/article/2005/11/15/AR2005111501419_pf.html

There is another thing to remember about these tax cuts:

This is a "poison pill" maneuver. But it is a poison pill that they want to leave for the Dems. When the Dems get back in control of Congress, sooner or later, being more fiscally responsible(which is far different than just cutting taxes, willy nilly), the Dems will have to face raising more money to operate the government. By rescinding some of the irresponsible tax cuts the repukes have rammed through, it gives the repukes a chance to chant "See?! See?!" about the dems.

Gotta give them credit, they sure do take the long tactical view, scumbags that they are.

for Bush. It appears that many first term initiatives are being undone with three years left in the second term. That is something to write home about.

At least the rich and wealthy can fall back on their big salaries and investments. When benefits get cut for the middle- or lower-class, they end up going without food and shelter.


Where the fuck are the priorities in this country?

Now onto Phase 2 "Look we don't have any money so we are going to have to start cutting things" will be ramped up after the midterms.