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Tax-cut bill goes to BushCheney casts tie-breaking vote in Senate
WASHINGTON (CNN) -- Congress approved a $350 billion package of tax cuts and economic assistance for states Friday, sending the bill to President Bush who has promised to sign it into law. The plan, providing $330 billion in new tax cuts and $20 billion in aid for states, is less than half the size of Bush's original $726 billion proposal. It is also less than the House's original $550 billion plan. The cuts are expected to have an immediate impact on many families, with the Treasury Department expected this summer to begin rolling out checks to give families an advance payment of the increased 2003 child credit. Other provisions include individual rate cuts, marriage penalty relief, a cut in the tax on dividends and capital gains, and provisions to help small businesses. (Full story) A senior Bush administration official said the president will sign the bill sometime after he returns to Washington from his ranch in Crawford, Texas, on Sunday and before he leaves on a trip to Europe later in the week. While the House approved the measure 231-200 early Friday, the Senate vote was 50-50. Vice President Dick Cheney cast the deciding vote. The tie in the Senate had been expected, and Cheney did not attend a commencement address in Louisiana to stay in Washington to ensure the bill's passage. As in the House, the Senate voted largely along party lines. Democratic Sens. Ben Nelson of Nebraska and Zell Miller of Georgia voted for the bill, while Republican Sens. John McCain of Arizona, Lincoln Chafee of Rhode Island and Olympia Snowe of Maine opposed it. In the House, seven Democrats voted for the bill, and one Republican opposed it. The Senate vote was preceded by a heated debate. Majority Leader Bill Frist, R-Tennessee, said the bill "accomplishes the goals that we all share in this body, and that is to move America forward, to grow the economy and to create jobs and job security for all Americans." But Minority Leader Tom Daschle, D-South Dakota, said, "The gimmickry in this bill is enough to make an Enron executive blush." Many cuts temporaryTo win support for the bill, its backers made much of the tax cut temporary, lowering its overall cost. For example, an increase in the child tax credit lasts two years and a cut in the capital gains tax lasts six years. But Democrats and some Republicans have complained the move hides the bill's true costs because future members of Congress likely will accede to pressure to extend the cuts. Over 10 years, some Democrats argue, the bill will cost $800 billion -- money they say is badly needed to fund critical government programs. Some lawmakers also have expressed concerns about increasing the federal budget deficit. But Bush and some congressional leaders have argued the plan will stimulate the economy and lower the unemployment rate. Bush's original $726 billion proposal centered on the elimination of taxes stockholders pay on their dividend payments. That proposal never gained much traction on Capitol Hill, where critics said its benefits disproportionately favored the wealthy. House and Senate negotiators agreed on the $350 billion version of the package Wednesday. CNN Capitol Hill Producer Ted Barrett and Correspondents Chris Burns, John King and Kate Snow contributed to this report.
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