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Thursday, March 22, 2007
Senate Budget Resolution -- the First Amendment
The amendment by Sen. Max Baucus (D-MT), referred to below, was not only first in order but first in significance among the amendments adopted yesterday during the Senate budget resolution floor debate. At a cost of about $195 billion over 2010-12, consuming all of the budget surplus projected in the resolution, the amendment
- extends middle class tax cuts including the 10 percent tax bracket, marriage penalty relief, and the child tax credit, strengthens the adoption tax credit, and provides combat pay under the EITC
- extends the current estate tax rate and exemption level, rather than returning to 2001 levels after 2010
- provides $15 billion for renewal and expansion of SCHIP
Sen. Judd Gregg (R-NH) complained that "traditionally, you always give the minority the first amendment" and one GOP tax aide remarked: "they guessed our first amendment."
By winning the first budget resolution vote with his amendment, Sen. Baucus effectively pre-empted the GOP from staking a claim on the projected surplus. "Democrats didn't create a surplus [in the budget resolution] in order for Republicans to divert it to special-interest tax cuts," a tax aide said. Sen. Baucus added: "They can offer anything they want [now], but the surplus will be all used up."
As a kind of policy placeholder, the amendment suggested all but unanimous support for extending the Bush 2001 and 2003 middle-class tax cuts. [The subsequent vote on an amendment by Sen. Jon Kyl (R-AZ) to extend the Bush capital gains, dividends, and estate tax cuts failed by four votes -- with every Democrat present and Sens. Olympia Snowe (R-ME) and George Voinovich (R-OH) voting against.]
Posted by Dana Chasin
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