–Senate Plan Extends Tax Cuts For Those Making $250,000 Or Less
–Senate Rejects GOP Plan To Extend All Bush Era Tax Cuts
–Senate Leaders Blast The Other Party’s Tax Cut Plan, Motivations

By John Shaw

WASHINGTON (MNI) – In dueling votes designed to send a message for
the November elections and frame this fall’s “fiscal cliff”
negotiations, the Senate voted Wednesday to approve the Senate
Democratic tax-cut plan and rejected the Republican alternative.

The Democratic plan would renew Bush-era tax cuts for a year for
those families making $250,000 or less.

It was approved on an 51 to 48 vote.

Before the Senate approved the Democratic plan, it rejected the
Republican plan to renew all the Bush era tax cuts for a year.

The GOP plan was defeated, on a 45 to 54 vote.

In a biting exchange prior to the votes and between the votes on
the two plans, Senate Majority Leader Harry Reid and Senate Minority
Leader Mitch McConnell slammed each other’s tax plans — and political
motivations — in scathing and often humorous terms.

“This is not a serious piece of legislation,” McConnell said of the
Democratic tax cut bill, adding, “This is a uniquely bad idea.”

“We know this is not about the economy. It’s about the election,”
McConnell charged.

Reid said the Democratic plan would provide tax cuts for 98% of all
Americans and would not be a costly as the Republican version.

The GOP bill would provide “wasteful giveaways to millionaires and
billionaires,” Reid charged.

The Senate votes were largely symbolic because tax bills are
required by the Constitution to originate in the House.

House Speaker John Boehner has said the House will vote next week
on the GOP plan to extend the Bush era tax cuts for a year.

The tax-cut debate is a central feature of the battle over the
coming fiscal cliff.

The fiscal cliff refers to the convergence of three fiscal events
later this year or early next year: the expiration of Bush era tax cuts,
across-the-board spending cuts, and increasing the statutory debt
ceiling.

** MNI Washington Bureau: 202-371-2121 **

[TOPICS: M$U$$$,MFU$$$,MCU$$$]