Tax Deal Passes First Senate Test
On a procedural vote, 83 senators voted for the new tax framework, with first seven “no” votes belonging to Democrats.
Many Democrats argue that it makes too many concessions to Republicans, including lowering taxes on inherited income – the estate tax – and could add billions to the deficit.
“Extending tax cuts for the wealthy is one of the least effective ways to create jobs and build the economy,” said Sen. Mark Udall, D-Colo.
Sen. Kirsten Gillibrand, D-N.Y., said in a statement that she opposed the bill because “extending Bush tax cuts for the very wealthy will saddle our children with billions of dollars of debt”, adding that “this kind of fiscal recklessness is bad for our economy and bad for future generations.”
Democrats gave in on many issues, but reached a compromise that no one wants to call a compromise.
The proposal calls for a tax rate of 35 percent on estates worth more than $5 million. That’s much less than Democrats expected. They would like to see a tax rate of 45 percent that kicks in at just $3.5 million.
The framework is getting more and more support from the public.
The American public overwhelmingly supports the tax compromise, according to a new ABC News poll. Sixty-nine percent of Americans support the package overall, far outnumbering the 29 percent opposed. And even when given arguments that it’ll add as much as $900 billion to the federal budget deficit, 62 percent continue to support the measure, with opposition inching up to only 34 percent.Click here for reuse options!
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