Senate stunner for W tax plan

New York Daily News ^ | 1/10/03 | KENNETH R. BAZINET

[kattracks]

WASHINGTON - President Bush's $674billion economic plan hit a wall in the Senate yesterday when moderate Republicans and centrist Democrats signaled it may be dead on arrival.

Sen. Lincoln Chafee (R-R.I.) said he'll vote against the package, joining at least four other GOP senators who hinted Bush's plan needs changes to win their votes.

"My fears have been borne out," said Chafee, who voted against Bush's $1.35trillion tax cut in 2001 because he feared it would bust the federal budget. "I can't see giving away any more of our revenues, which we're doing in tax cuts."

Chafee and Sen. Diane Feinstein (D-Calif.) announced legislation to block scheduled reductions in the top income tax rate as long as the government runs a budget deficit.

Four other Republican senators - Susan Collins and Olympia Snowe of Maine, John McCain of Arizona and George Voinovich of Ohio - also criticized the Bush plan.

Collins, who supports parts of Bush's plan, said his proposal to eliminate taxes on stock dividends - the heart of the Bush plan - "deserves further scrutiny."

"I would like to see further tax cuts targeted toward middle- to lower-income taxpayers who would be likely to put the money back into the economy," she said.

Snow and Voinovich told White House Chief of Staff Andrew Card during a closed GOP meeting yesterday that they have problems with the stimulus package.

The GOP has a razor-thin 51-49 majority in the Senate, so five possible defections likely would doom Bush's plan.

"It's going to be dramatically changed," a top GOP Senate source declared. "What you see now is not what you're going to get."

Adding to the turmoil for White House head-counters, most of the 12 Democrats who supported Bush's 2001 tax cut are not on board this time around. Centrist ringleader Sen. John Breaux (D-La.) called the tax cut "good politics but it is not necessarily good policy."

Just days after ceding control of the Senate to the GOP majority, Senate Minority leader Tom Daschle (D-S.D.) said, "I'm pretty sure they don't have the 51 votes."

A GOP source said the only Democratic defection the White House can count on is Georgia lame-duck Zell Miller, who is not running for reelection.

"The big dynamic is that the moderate Democrats are not going to cut the White House slack this time," the GOP source said.

[Claire Voyant]

I think Frist WILL have a spine...at least I'm PRAYING for him. After having been burnt on his first day by Hillary and KKK Bryd and Co., I think he will be VERY cautious dealing with them.

[Samurai_Jack]

net for that bracket is hardly likely to be spent at Home Depot whereas any cut in my rate gets spent at CompUSA.
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Okay wait a minute... Dont get me wrong, because I understand what you are saying. But a cut in the lower brackets goes to consumer goods which these days are manufactured overseas. The only benefits to the US economy are 'middleman profits', Shipping and retail markups. No Services No Installations No Delivery... No Jobs. A targeted tax cut will depress the economy because you gave the money to 'the people' and they spent it on 'Made in China' stuff. You might as well just send the money to Bin Laden through his emmissary Bin Patty Murray.

But an across the board tax cut and corporate spending incentives will spur economic growth by forcing the corporation into deductable capital expenditures. Capital expenditures for example, Office Equipment which must be configured, installed and maintained either by internal IT personnel who get to keep their jobs now, or by contractors who get to go to work again or both.

It's a mistake to divide americans into classes and target tax cuts at preferred groups. What you are forgetting is that we are an upwardly mobile society. My parents worked so that I could enjoy a better life style, and I work so that my kids can enjoy a better life style. People in lower tax brackets are short sighted with the 'robin hood' mentality given that their children will end up paying the penalties they impose on those they envy so deeply. And the enemies of prosperity and industry will play the class envy card with impunity against people who dont know the definition of demagogue.

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"A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves largess from the public treasury. From that time on the majority always votes for the candidates promising the most benefits from the public treasury, with the results that a democracy always collapses over loose fiscal policy, always followed by a dictatorship."

[Pietro]

I think you left out McSphincter, my least favorite rino. I was afraid (being from PA) that his name would be on the list.

Perhaps someone can explain a seeming contradiction, ie New England Reps; the people I've met from NE are tough, hard, no nonsense folks. Yet, their reps in congress, even the GOP, are the most flaming liberals in the country. And Maine, of all places that require a stiff backbone - it's first, has the two wimpyest Republicans in the Senate.

It just don't make no sense.

[Samurai_Jack]

bump

[OldFriend]

So they admit tax cuts put money into the economy...but but but. This is nothing more than extortion by the usual suspects and downright viciousness by McCrazy.

[Anarchist]

I wonder if the Democrats despise their DINOs as much as Republicans despise their RINOs.

[FITZ]

Fiscal conservancy is something we both can back I'm sure.

Yes ---Bush is doing the right thing and should be supported in this. Taxes have to go, it would solve a lot of problems.

[GailA]

I can't see giving away any more of our revenues, which we're doing in tax cuts."

DUNCE IT's NOT YOUR MONEY! It's the TAXSERFS MONEY.

[Mr. K]

A republican with brains should say "OK, if you want to limint this tax cut untl the bufget is balanced, then let's cut spending an balance it"

With the democraps talking about how evil a deficit is (oddly, it is only evil when republicans are in control) then we can use that as a great incentive...

[falfa]

I would like to see Frist take charge on this right off the bat. You know, cut a few hearts out or something...

That would imply that they had hearts to begin with. Questionable in some cases.

[RooRoobird14]

I've already called that @sshole McCain's office in Tempe. Hubby was so enraged, he went there in person to complain.

Please call McStain's office to voice your opinion:

602-952-2410

McStain's constituency is no longer the people of Arizona. He's completely focused on what gets him on "Imus in the Morning" (BARF) or gets his picture in the Washington Post.

What a worthless pile of manure my senator has ended up being......

[cynicom]

Amazing that racist Lott is going along with it, guess he is a team player.

[rintense]

You know, I'm beginning to think that Bush made this grand proposal knowing the Dems and RINOS would hate it, and therefore 'compromise' to an more ideal plan- one that Bush actually wanted in the first place.

Dream big and dare to fail.

It worked in 2000 when the Dems compromised and we still got tax cuts. Looks like it might happen again.

[TLBSHOW]

President Bush's $674billion economic plan hit a wall in the Senate yesterday when moderate Republicans and centrist Democrats signaled it may be dead on arrival.

There are fake republicans everywhere!

[rintense]

Exactly. The fact that Chaffee is a Republican sickens me. If he thinks it's 'their' money, he has another thing coming. It's OUR money, something that I know GWB agrees with.

[cynicom]

I am shocked that the pubs would even consider counting a vote from racist Lott. To me that would be unworthy of the pubs and Bush.

[TLBSHOW]

Last night on Radio FR Jesse Lee Peterson took the republican to the wall for calling Lott a racist! Said they need to get over fear of being called a racist he siad he is called the n word all the time! No big deal!

[cynicom]

Well, lets see how much control Frist has with his new found friends in the senate. Seems to me that as a new and dynamic leader, he should be able to whip his troops into line. With four people siding with the socialists, it seems they are not really pubs.

[TLBSHOW]

Bush will have to have a TV talk to the American People and slam those that want to stop this!

That is what he has to do and now not a month from now!!