News / USA

US Tax Bill Clears Senate

US President Barack Obama arrives to speak about the tax legislation working its way through Congress during a statement in the Eisenhower Executive Office Building adjacent to the White House in Washington, DC, Dec 15, 2010
US President Barack Obama arrives to speak about the tax legislation working its way through Congress during a statement in the Eisenhower Executive Office Building adjacent to the White House in Washington, DC, Dec 15, 2010

Multimedia

Audio

The U.S. Senate has overwhelmingly approved a sweeping federal tax bill that will swell America's national debt by hundreds of billions of dollars and, it is hoped, stimulate a lagging U.S. economy. Attention now shifts to the House of Representatives, where some Democrats want to alter the tax deal struck between President Barack Obama and congressional Republicans.

In a rare show of bipartisanship, the Senate voted 81 to 19 to extend existing federal tax rates for all income levels. Those tax rates are set to rise beginning next year - an outcome neither party wants at a time of chronic economic weakness. The bill also extends federal jobless benefits, limits inheritance taxes on multi-million-dollar estates, and trims worker payroll contributions to Social Security. The bill would increase spending and shrink revenue, sharply boosting federal indebtedness over the next two years.

A common refrain from liberal and conservative senators alike: The tax deal is flawed, but better than doing nothing.

Republican Senator Jon Kyl of Arizona said, "Nobody thinks this is a perfect bill."

The senator explained his "yes" vote this way: "While any increase in the deficit is unwelcome, the overall merits of this bill, including preventing a massive tax increase - one for each and every taxpayer - outweigh [concerns about] that deficit increase, in my opinion."

At the other end of the ideological spectrum, California Democratic Senator Barbara Boxer said dire economic conditions make the tax deal necessary. "I voted for this bill because I think our economy continues to be in a fragile state when it comes to job growth."

A handful of Republicans who opposed the deal objected to extending unemployment benefits without corresponding cuts in spending to offset the cost.

Meanwhile, Independent Senator Bernie Sanders of Vermont voted "no" to protest what he sees as tax giveaways for the super-rich. "We are in the process of providing huge tax breaks to the wealthiest people in this country, to drive up the national debt, which our kids and grandchildren will have to pay off."

Sanders was one of several senators to offer amendments ahead of the vote, none of which were adopted.

The House of Representatives also is expected to vote on the tax package, but it is not clear whether the chamber will alter the bill as it currently exists. Any changes would send the package back to the Senate for another vote.

Economists view the tax bill as stimulative, and some forecasters say the package could boost U.S. economic output by one percentage point next year. But it will add to America's trillion-dollar federal deficit at a time when polls show Americans worried about soaring U.S. national debt.

While voting for the tax bill, Virginia Democratic Senator Mark Warner said Congress must address the fiscal imbalance. "It is time for us in the Senate, and excuse the language, to put up or shut up [act or be silent]. We can do short term stimulus now, but next year engage in meaningful tax reform and deficit reduction."

President Obama has championed the tax bill as an imperfect, but necessary bipartisan compromise to fuel economic growth. If enacted, the measure effectively postpones thorny tax issues until 2012, when Mr. Obama presumably will be running for reelection, and Republicans hope to take control of both the White House and the Senate.

You May Like

Changing Under Pressure, IS ‘Potent’ as Ever

US intel officials describe Ramadi's fall as concerning, but say it isn't emblematic of larger effort to degrade IS capabilities More

Nigeria Fuel Shortage Shows Fragility of Africa’s Oil Giant

Although it is the largest oil producer in Africa, country has nearly ran out of fuel it needs to power its generators, cars and airplanes over the past week More

Arrested Football Officials Come Mainly From the Americas

US Justice Department alleges defendants participated in 24-year scheme to enrich themselves through corruption of international soccer More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
3D Printer Makes Replica of Iconic Sports Cari
|| 0:00:00
...    
🔇
X
George Putic
May 27, 2015 9:31 PM
Cars with parts made by 3D printers are already on the road, but engineers are still learning about this new technology. While testing the possibility of printing an entire car, researchers at the U.S. Department of Energy recently created an electric-powered replica of an iconic sports roadster. VOA’s George Putic has more.
Video

Video 3D Printer Makes Replica of Iconic Sports Car

Cars with parts made by 3D printers are already on the road, but engineers are still learning about this new technology. While testing the possibility of printing an entire car, researchers at the U.S. Department of Energy recently created an electric-powered replica of an iconic sports roadster. VOA’s George Putic has more.
Video

Video US Voters Seek Answers From Presidential Candidates on IS Gains

The growth of the Islamic State militant group in Iraq and Syria comes as the 2016 U.S. presidential campaign kicks off in the Midwest state of Iowa.   As VOA’s Kane Farabaugh reports, voters want to know how the candidates would handle recent militant gains in the Middle East.
Video

Video A Small Oasis on Kabul's Outskirts Provides Relief From Security Tensions

When people in Kabul want to get away from the city and relax, many choose Qargha Lake, a small resort on the outskirts of Kabul. Ayesha Tanzeem visited and talked with people about the precious oasis.
Video

Video Film Festival Looks at Indigenous Peoples, Culture Conflict

A recent Los Angeles film festival highlighted the plight of people caught between two cultures. Mike O'Sullivan has more on the the Garifuna International Film Festival, a Los Angeles forum created by a woman from Central America who wants the world to know more about her culture.
Video

Video Kenyans Lament Losing Sons to al-Shabab

There is agony, fear and lost hope in the Kenyan town of Isiolo, a key target of a new al-Shabab recruitment drive. VOA's Mohammed Yusuf visits Isiolo to speak with families and at least one man who says he was a recruiter.
Video

Video Scientists Say Plankton More Important Than Previously Thought

Tiny ocean creatures called plankton are mostly thought of as food for whales and other large marine animals, but a four-year global study discovered, among other things, that plankton are a major source of oxygen on our planet. VOA’s George Putic reports.
Video

Video US-led Coalition Gives Some Weapons to Iraqi Troops

In a video released Tuesday from the Iraqi Ministry of Defense, Iraqi forces and U.S.-led coalition troops survey a cache of weapons supplied to help Iraq liberate Mosul from Islamic State group. According to a statement provided with the video, the ministry and the U.S.-led coaltion troops have started ''supplying the 16th army division with medium and light weapons in preparation to liberate Mosul and nearby areas from Da'esh (Arabic acronym for Islamic State group).''
Video

Video Amnesty International: 'Overwhelming Evidence' of War Crimes in Ukraine

Human rights group Amnesty International says there is overwhelming evidence of ongoing war crimes in Ukraine, despite a tentative cease-fire with pro-Russian rebels. Researchers interviewed more than 30 prisoners from both sides of the conflict and all but one said they were tortured. Henry Ridgwell reports for VOA from London.
Video

Video Washington Parade Honors Those Killed Serving in US Military

Every year, on the last Monday in the month of May, millions of Americans honor the memories of those killed while serving in the armed forces. Memorial Day is a tradition that dates back to the 19th Century. While many people celebrate the federal holiday with a barbecue and a day off from work, for those who’ve served in the military, it’s a special day to remember those who made the ultimate sacrifice. Arash Arabasadi reports for VOA from Washington.
Video

Video Kenya’s Capital Sees Rise in Shisha Parlors

In Kenya, the smoking of shisha, a type of flavored tobacco, is the latest craze. Patrons are flocking to shisha parlors to smoke and socialize. But the practice can be addictive and harmful, though many dabblers may not realize the dangers, according to a new review. Lenny Ruvaga has more on the story for VOA from Nairobi, Kenya.
Video

Video Rolling Thunder Run Reveals Changed Attitudes Towards Vietnam War

For many US war veterans, the Memorial Day holiday is an opportunity to look back at a divisive conflict in the nation’s history and to remember those who did not make it home.
Video

Video Female American Soldiers: Healing Through Filmmaking

According to the United States Defense Department, there are more than 200-thousand women serving in the U.S. Armed Forces.  Like their male counterparts, females have experiences that can be very traumatic.  VOA's Bernard Shusman tells us about a program that is helping some American women in the military heal through filmmaking.

VOA Blogs