| Senate Votes for Lower Tax Cuts | |
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Dateline: 04/06/01
In a 65-35 vote, the US Senate on Friday approved its version of a FY 2002 Budget Resolution that trims $400 billion off President Bush's proposed $1.6 trillion, 10-year tax cut while adding some $7 billion in spending. All 50 Republicans, along with 15 Democrats voted for passage of the resolution.
The Senate's approval came after Republican leaders abandoned their efforts to drive the tax cut back up to the $1.6 trillion as approved last week in the House of Representatives.
A joint conference committee must now meet to reconcile differences in the House and Senate passed versions of the Budget Resolution. Republicans still hope to increase the tax cuts during the conference.
The Budget Resolution merely sets guidelines and general spending limits to be used by Congress in writing and passing the actual spending bills funding the various government programs. The Budget Resolution does not require the president's signature as do each of the final spending bills. Passage of the spending bills marks the official completion of the annual federal budget cycle. By law, the federal budget must be completed by Oct. 1, the beginning of the government's fiscal year. [See: The Federal Budget Process]
In hopes of stimulating the economy, the Budget Proposal calls for $85 billion in tax reductions this year. A move supported by both parties.
The Budget Resolution passed by the Senate calls for total spending of some $2 trillion in 2002. Both Republican and Democratic Senators succeeded in passing amendments that increased spending for health-care, agriculture, defense and other discretionary programs.
Total spending for discretionary programs - those not automatically funded like Social Security and Medicare - increased from the House-approved $661 billion to $678 billion, according to Senate Majority Whip Sen. Don Nickles (R-OK).
Both the House and Senate have now adjourned for their Spring District Work Period. Lawmakers will return to Washington on April 23.
