WASHINGTON, Sept. 23, 2008
Senate Passes Huge Tax Break Package
$100 Billion Bill Targets Alternative Minimum Tax; President Signals His Approval
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At a cost of more than $100 billion, the bill also nudges the nation toward greater use of alternative energy resources, renews popular tax breaks for businesses and individuals, and extends relief to disaster victims.
It includes a provision to ensure that mental health problems get the same level of insurance benefits as other medical treatment. The bill passed 93-2.
"The economy is struggling," Senate Finance Committee Chairman Max Baucus, D-Mont., said. "At times like these, Americans need tax cuts that they've come to count on, that can help them get by."
But with time running out in this session of Congress, the House is choosing to diverge from the Senate by taking up a bill that fully pays for the business and individual tax breaks by eliminating some tax breaks for hedge fund managers and for corporations doing business overseas.
The Senate only partially offsets the costs of its business and individual tax breaks, and Senate leaders warned that any changes could doom the bill. The House could take up its version as early as Wednesday.
The White House has signaled its support for the Senate bill, reports CBS News White House correspondent Mark Knoller.
"Despite concerns with some provisions in this bill, it’s a bill the President can sign, and we strongly encourage the House to pass it," said White House spokesman Tony Fratto. "We don’t believe the appropriate way to protect 26 million Americans from the Alternative Minimum Tax is to impose tax increases on other Americans. We also strongly support the extensions of tax credit for research and experimentation expenses, incentives for charitable giving, and the tax incentives for renewable energy.”
The tax bill is one of several major efforts to right the teetering economy in what could be the final week of this session of Congress. Lawmakers are trying to reach agreement on a $700 billion plan to bail out failing financial institutions, and Democrats are trying to put together a stimulus package to help average citizens get through the current economic crisis.
The alternative minimum tax was enacted in 1969 to catch a few very rich tax dodgers. But it was never adjusted for inflation and now Congress must act every year to ensure it doesn't catch more people.
Without action, those affected could grow from about 4 million to 25 million, at an average tax increase of $2,000. The fix would cost $64 billion spread out over 10 years.
Last year Congress, after a prolonged fight over whether to pay for the fix with new tax revenues in other areas, waited until late December to pass legislation, causing delays in some IRS refund payments. The AMT patch this year, as last year, is not paid for.
The first segment of the three-part tax bill was a $17 billion measure to spur investment and create jobs in the renewable energy industry. The energy legislation extends for eight years, through 2016, investment tax credits for the solar power industry and for homeowners who install solar and wind equipment.
Taxpayers can claim a credit of up to $7,500 for purchasing plug-in electric cars, and production credits are extended to wind, biomass and marine - waves and tide - facilities. There are incentives to use smart meters for more efficient home energy use.
A study commissioned by the Solar Energy Industries Association found that the eight-year extension would more than triple investment during that period, to $325 billion, and almost triple employment in the industry, to 440,000 in 2016.
Sen. Maria Cantwell, D-Wash., who helped put the energy package together, said the solar industry investment would provide power for more than 7 million people.
The measure drew opposition from the National Wildlife Federation, which objected to incentives for oil shale, tar sands and coal-to-liquid production it said was harmful to the environment.
While enjoying wide bipartisan support, the tax bill has struggled to get through the Senate this year. Senate Democrats have been caught between Republicans and the White House who oppose any new taxes to offset the costs of the tax relief and House Democrats demanding that the bill be paid for to avoid adding to the federal deficit.
"Don't send us back something else," Senate Majority Leader Harry Reid, D-Nev., said in an appeal to the House. If there are changes, he said, "it will die."
The Senate bill offsets the energy measures by limiting tax breaks for the oil and gas industry and pays for about $25 billion of the $68 billion in individual and business tax breaks.
Among the extensions of expiring tax breaks, the biggest is the $19 billion research and development tax credit. Also renewed are deductions for state and local general sales taxes, higher education costs and teachers' personal expenses.
The legislation additionally includes more than $8 billion in tax relief for Midwestern states hit by natural disasters this summer and for the more recent victims of hurricanes in Texas and Louisiana.
It requires private insurance plans that offer mental health benefits to offer benefits equivalent to those of medical-surgical treatments.
© MMVIII, CBS Interactive Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.
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See all 57 CommentsAmong likely voters, the poll found Obama now leads McCain by 52 percent to 43 percent. Two weeks ago the race was essentially even, with McCain at 49 percent and Obama at 47 percent, the Post reported.
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With Bush demanding we bailout his friends on Wall Street, it is certainly appropriate the hudge fund managers and corporations overseas carry more of the burden-- like paying their share of taxes.
Now Bush wants American taxpayers to give him another boost-- on top of his spendthrift ways with Iraq, monstrous national debt and lavish Bush gifts to his friends (the tax cuts given primarily to his political "base", the wealthy 5.5 percent of taxpayers).
Bush wants a $700 billion check-- just like that.
And Bush has a simple plan for that check-- to pass along our money to the very Wall Street players which are responsible for the crisis.
It''s clear direct action is long overdue for the disastrous Bush economy, but Bush''s blank check proposal is nowhere near the answer.
Barack Obama laid out key principles for dealing with this situation. Obama''s main point: Main Street must be put ahead of Wall Street, and no blank check for the Bush Administration. http://www.barackobama.com/issues/fiscal
Congress needs to hear from the public.
Two major tax cuts by Bush-- most of it to a small minority of taxpayers-- were almost immediately followed by absolutely nothing. A disappointed Bush was left empty-handed, plaintively assuring everybody who would listen the economy is actually much better than it seemed.
By now, most Americans realize the next president must restore our fiscal policy to a semblance of rational order. After eight years, Bush tax cuts have not worked as any kind of effective, coherent stimulus for the economy.
It is abundantly clear the standard Bush modus operandi has been to avoid tax increases and simply postpone them to the next administration. That is called "borrowing with interest", and already Bush has nearly doubled the national debt. With his $700 billion appropriation request, he may well make it-- but at our expense.
Bush (Shrub) never forgot the humbling experience of his father, forced to recant his famous line, "Read my lips! No new taxes!" So Bush does the emotional but not rational thing, dismissing taxes like a drunk tosses his house keys away when he cannot find the right one.
(SEE "Welfare for the Rich?"--5)
Their principal deception portrays government as an enemy of the public interest. But in stark and factual contrast, a government in a truly functional democracy is not enemy, but instrument of the people it is charged to serve.
Most interestingly, when the GOP found itself in power, it not only expanded "evil" government for its own ends, but created the most monstrous governmental debt this nation ever has seen.
It seems the GOP cannot get even its own message straight. Consider taxation. The GOP free market bozos regard taxation, at best, as a necessary evil because (as they remind everybody) there is no free lunch.
Yet, Bush and McBush regard taxes as an UNnecessary evil, and promise to refrain from taxation. They appear the odd men out, for most (even conservative) fiscal experts continue to insist taxation is an essential part of a rational fiscal policy. It goes along with the truism about "no free lunch".
Taxation is only a means to an end-- not intrinsically good or evil. For example, two major tax increases by Clinton were almost immediately followed by a surge in economic growth. This puzzled supply-siders to distraction.
(see "Welfare for the Rich?"--4)
Welfare for the rich is called a "rescue", but a rescue for the the poor or middle class is called "welfare"? Don''t ask Bernanke for a famiy values sermon from Wall Street on honor and trustworthiness and personal integrity-- Wall Street has none. And Bernanke, himself, plays by rules imposed by the very players he is supposed to regulate-- after all, Bush has told him they are too big to fail.
Speaking of privilege, perhaps we should ask, where is the tax revenue Bush gave the "HaveMores"-- that slim 5.5 percent segment of taxpayers Bush called his political "base"? Just at the moment Bush fiscal policy erupts in a four-alarm blaze, we learn Bush has drained the treasury reservoir dry to throw a party for his friends.
At this point, we might do well to wonder whether these GOP-aligned, "free-market" bozos ever properly identified themselves. Why have they gone into hiding, if not to escape the firestorm their lies helped create?
(see "Welfare for the Rich?"--3)
In the current market melt-down, not one problem is attributable to "big government" or "oppressive regulations standing in the way of business prosperity". So much for supply-siders who preached-- somewhat fatuously-- the job of government is to stay out of the way of business.
As it turns out, the Laffer tribe tried to foist the biggest fiction (lie) of all on the American people-- that their own government is the enemy, and all America needs is a good dose of lessez faire and everything will be better.
Apparently not, from all indications.
Abruptly, we find the stage miraculously cleared of familiar, if buffoonish, personalities. And where, oh, where, are the advocates of the so-called "free market" now?
Remember the "tough love" GOP bozos love to talk about when it comes to Americans who cannot afford health care, or who must choose between buying food or paying their heating bills? Where is their prescription for "tough love", now, when Bush asks for a taxpayer handout?
(see "Welfare for the Rich?"--2)
A short clip on the morons who plan to vote for McCain.
They thought they could write Bush a cowboy-president script similar to the cowboy/movie star script they wrote for the heartless Ronnie boy. Bush wasn''t smart enough or talented enough to pull it off nearly as well as Reagan did, so his fake-azz role-playing is widely recognized as such. The b*st*rd will be remembered for being exactly what he is. We''ll never see a coin with this monkey''s face on it! LOL!
Posted by guyfrompa49 at 07:40 AM : Sep 24, 2008
Sparky I hate to break this to you but "LIBERAL''S" haven''t been in charge of this Ship and it IS sinking you know. Have you thought about taking off the Swastika, putting the picture of Joe McCarthy in the drawer and joining us here in the REAL world??
SHAME ON YOU! You are the ones who TRULY HATE AMERICA!
People are getting sick of it and are not listening to you ANYMORE!
Posted by Credibility2 at 07:31 AM : Sep 24, 2008
Well YOU should be voting DEMOCRAT then Sparky because in the 6 years the Republican''s controlled the ENTIRE Government they, OVER AND OVER AND OVER, rejected EVERY attempt to stop the Offshore Tax havens as well as any attempt to stop rewarding Corporations who sent our jobs out of the country.
Posted by jerryomara at 07:14 AM : Sep 24, 2008
Well said!!
In 2000, you guys were screaming about all the experience thanks to Bush/Cheney. Look where it has gotten us. Speaking of experience - how much more experience do you GOP people need to know you are BAD at picking presidents?
You guys are so freakin'' predictable, that it is frightening. Has it ever dawned on you that "the terrorists" want us over there, not because they think they can win against us from a military perspective, but they know our hubris and figure we will do ourselves more damage economically than anybody could do militarily? It''s what was done to the USSR when they were stuck in Afghanistan. They went bankrupt.
There is more than one way to skin a cat. You are just too stupid to see it.
And, speaking of racists, I know plenty of people in rural PA and there you go.
One other thing - Cons say they believe in God more than liberals do. So, I wonder why are Cons more afraid of everything than the average liberal? If God is on your side, why the heck are you so scared? You guys are a bunch of scaredy cats. When they know what you fear, they know how to control you.
Posted by guyfrompa49 at 07:57 AM : Sep 24, 2008
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Correction; putting in a Guy with no clue and no experience would not be a change.
Who specifically in Iraq had anything to do with the twin towers coming down? If you can make the conclusion that Iraq was responsible for this, I can draw the conclusion that you are a racist.
By thw way, most wars are won or lost without a gun. Go bankrupt to prove you are tough is exactly the policy that you GOP type like and Osama knows it.
Posted by whatithink1
LOL! you merely have to mention the word Muslim or terrorist, and you can watch them pee_ their pants before your very eyes. How do you think we ended up with Bush for a second term and with his dismal record? Karl Rove knew how to scare them silly.
Posted by dinkydog1 at 08:27 AM : Sep 24, 2008"
LMAO Good one.
And it looks like he''''s winning now too.
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Posted by hungry1968-1 at 09:33 AM : Sep 24, 2008
And that''s how Reagan beat the Soviets in the cold war ... its a strategy that works, for either side. The question is whether or not you have the national resources (including will) to win the fight. In the cold war we did ... in the War on Terror ???
Might I direct you here for more information:
Posted by hungry1968-1 at 10:09 AM : Sep 24, 2008
Its a great article - you should actually read it for understanding - not for your talking points. And you should avail yourself of the opportunity to read more than open source research.
Reagan''s "strategy" was to force the Soviet Union to keep pace with the US in the arm''s race. The US outspent the Soviets in strategic weapons development during the Reagan years by nearly 4 to 1. The Soviet economy collapsed as a result of the successful execution of the Reagan strategy; which essentially encouraged (and the Soviets didn''t need MUCH encouragement) to attempt to keep pace. Gorbachev REACTED to the collapse of the Soviet economy in the only way he believed he could while still retaining power - eventually that collapsed as well. Opening up society, pushing reforms, etc ... There was a definate cause-effect.
Feel free to be in denial ... it doesn''t matter to me one way or the other which party executed the strategy - the strategy was successful. I was the guy staring over the fence from W. Germany to Chechkoslovakia ... and whatever worked was good to me.
That''s a fact
So tired of the Republicans perpetuating the myth that Reagan was a good President
The facts tell a different story
Paying for Reagan
ABROAD AT HOME;
ANTHONY LEWIS
Published: October 5, 1990
LEAD: There has been much soul-searching since Aug. 2 about failures of American policy that helped to encourage Saddam Hussein''s aggression. But not enough attention has been paid to the man whose folly led the way: Ronald Reagan.
In three significant ways, President Reagan gave the Iraqi leader reason to believe that he did not have to worry about American opposition. Mr. Reagan played down human rights concerns, winking at horrendous cruelties by Saddam Hussein. He destroyed U.S. energy policy, making us more vulnerable to oil threats. And he treated international law with contempt.
CONT-
Paying for Reagan
Oct 5th, 1990
Shortly after Mr. Reagan was elected President, he said energy conservation meant being too hot in the summer and too cold in the winter. His policy was in keeping with that ignorant sneer.
Funds for research on energy conservation were cut toward the vanishing point. Energy efficiency standards for cars and appliances were cut back, opposed, delayed. And the Reagan Administration just about ended the search for solar and other renewable energy sources.
By the conservation measures started in the Carter Administration, the United States had reduced its dependence on imported oil to 28 percent of its total supply. Now about half the oil we use is imported.
http://query.nytimes.com/gst/fullpage.html?res=9C0CEEDB113BF936A35753C1A966958260
Posted by excoachken at 09:56 AM : Sep 24, 2008
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What''s your point Ken? I''d agree with you that the US has put itself in an economically vulnerable position - much like the ''Reagan strategy'' put the Soviets in a vulnerable position. The question is who''s trying to use that strategy to change the balance of power - China? Bin Laden?
As to your comment about the Russian economy ... just reflect, except for perhaps oil and a nesting doll when was the last time you bought anything designed, built, and sold from Russia - bet you can''t name one, especially one that uses high technology.
Don''t let your partisanship cloud your arguments.
Go ahead and tell us how a man that relied on an Astrologist as main advisor should be considered a wise man
Joan Quigley , of San Francisco, is an astrologer best known for her astrological advice to the Reagan White House in the 1980s.
Quigley later wrote a book about her experiences, titled What Does Joan Say?. Quigley writes, "Not since the days of the Roman emperors%u2014and never in the history of the United States Presidency%u2014has an astrologer played such a significant role in the nation''s affairs of State."
Posted by guyfrompa49 at 08:45 AM : Sep 24, 2008
House Minority Leader John Boehner, R-OH - did not serve.
House Minority Whip Roy Blunt, R-MO - did not serve.
House Republican Conerence Chair Adam Putnam, R-FL - did not serve.
House Republican Policy Committee Thaddeus McCotter, R-MI - did not serve.
National Republican Congressional Committee Chair Tom Cole, R-OK - did not serve.
Former New York Mayor Rudy Giuliani - did not serve.
Former Massachusetts Governor Mitt Romney - did not serve in the military but did serve the Mormon Church on a 30-month mission to France.
Former Senator Fred Thompson - did not serve.
Former Speaker of the House Dennis Hastert - avoided the draft, did not serve.
Former House Majority Leader *** Armey - avoided the draft, did not serve.
Former House Majority Leader Tom Delay - avoided the draft, did not serve (1). "So many minority youths had volunteered ... that there was literally no room for patriotic folks like himself."
Former House Majority Whip Roy Blunt - did not serve
Former Senate Majority Leader Bill Frist - did not serve. (An impressive medical resume, but not such a friend to cats in Boston.)
Posted by guyfrompa49 at 08:45 AM : Sep 24, 2008
guyfrompa49
I found list of your
"MY HERO''S"
GW Bush - decided that a six-year Nat''l Guard commitment really means four years. Still says that he''s "been to war." Huh?
VP Cheney - several deferments , the last by marriage (in his own words, "had other priorities than military service")
Former Att''y Gen. John Ashcroft - did not serve , ; received seven deferment to teach business ed at SW Missouri State
Jeb Bush, Florida Governor - did not serve.
Karl Rove - avoided the draft, did not serve , too busy being a Republican.
Former Speaker Newt Gingrich - avoided the draft, did not serve
Senate Republican Conference Chairman Jon Kyl, R-AZ - did not serve.
Senate Republican Conference Vice Chair John Cornyn, R-TX - did not serve.
National Republican Senatorial Committee Chair John Ensign, R-NV - did not serve.
Defense Policy Board member Richard Perle and Deputy Secretary of Defense Paul Wolfowitz: No military service
Sean Hannity DID NOT SERVE
MICHAEL SAVAGE DID NOT SERVE
RUSH LIMBAUGH BOO HOO HAD A HEMMOROID DID NOT SERVE
Posted by guyfrompa49 at 08:45 AM : Sep 24, 2008
LOOK MORE GOP WAR HERO''S LOL
Senate Minority Leader Mitch McConnell, R-KY - did not serve (1)
Senate Assistant Minority Leader Trent Lott, R-MI - avoided the draft, did not serve.
Phil Gramm LONG STINT IN THE DEREGULATION DEPT
Bill Bennett TOUGH TALKER DID NOT SERVE
Chief Justice Antonin Scalia WISE GUY DRAFT DODGER
Ted Nugent Hack Musician Wildlife killer Did not serve
Posted by excoachken at 09:56 AM : Sep 24, 2008
And engineered the demise of the energy initiatives begun in the Carter Admin.
If those initiatives had not been ended we would not be where we are today in regards to energy.
Just to head off the many comments on how you should not need the aides or speaking because it is an insult to the deaf community, I would like to point out that it should be a choice left up to the deaf person how they want to interact with the world. One is not better than the other depending on the person.
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Posted by Nancy_Naive at 12:32 PM : Sep 24, 2008
How do you know he can''t speak?
My congratulations to you on combating ignorance with facts.
Ignorance is bi-partisan but facts are non-partisan.
:)
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