Senate Passes $70 Billion in Tax Cuts, Ensuring Wealthy Taxpayers Will Benefit Most

Strategic Insights -

The Senate voted 54 to 44 to pass almost $70 billion in tax cuts, mostly for the wealthiest American taxpayers, ensuring that virtually all of President George W. Bush's tax cuts will be locked in place until after the next presidential election. This measure extends Bush's tax cuts on stock dividends and capital gains until 2010, shielding about 15 million affluent families from an increase in the alternative minimum tax. Senate Republicans celebrated the victory, while Democrats criticized the bill for favoring wealthy investors over ordinary citizens.

Key Takeaways:

  • The Senate voted 54 to 44 to pass $70 billion in tax cuts, mostly for the wealthiest American taxpayers.
  • The extended tax cuts will shield about 15 million affluent families from an increase in the alternative minimum tax.
  • The vote ensures that virtually all of President George W. Bush's tax cuts will be locked in place until after the next presidential election.
  • Senate Republicans praised the bill as a victory for American taxpayers, while Democrats criticized it for favoring the wealthy over the working class.
  • The bill allows programs aimed at ordinary citizens to languish, such as tax deductions for college tuition and a savings credit for low-income people that expired last year.
  • House Republicans failed to reach agreement with Republican moderates over a budget plan for next year, with some seeking $3 billion more for health and education.
  • Virtually all of Bush's tax cuts, including rate reductions for individuals and the elimination of estate taxes, will expire simultaneously at the end of 2010, posing budget challenges for the next president.

Statistics:

  • $70 billion: The total amount of tax cuts passed by the Senate.
  • 54-44: The Senate vote in favor of passing the tax cuts.
  • 15 million: The number of affluent families shielded from increased alternative minimum tax.
  • 2010: The year in which extended tax cuts on stock dividends and capital gains will expire.
  • 3 billion: The amount sought by Republican moderates for health and education funding.

Sources:

  • WASHINGTON, -- (Washington, Edmund L. Andrews, April 15: -- The Senate voted 54 to 44 Thursday to pass almost $70 billion in tax cuts, mostly for the wealthiest American taxpayers. The action ensures that virtually all of President George W. Bush's tax cuts will be locked in place until after the next presidential election. (Bloomberg)
  • The measure, which the House of Representatives passed Wednesday, would extend Bush's tax cuts on stock dividends and capital gains until 2010, and shield about 15 million affluent families for one year from an increase in the alternative minimum tax. (The New York Times)