Despite opposition from a handful from each party, the U.S. Senate voted Wednesday on a tax deal that extends tax cuts initially backed by George W. Bush for all Americans. The measure passed 81 to 19 with both of Floridas senators -- Democrat Bill Nelson and Republican George LeMieux -- voting in favor.
The Senate extends the tax cuts that Bush supported back in 2001 and later in 2003 until 2012 -- virtually guaranteeing that the issue will be a factor in the 2012 elections when President Barack Obama will be up for re-election.
Besides extending the Bush tax cuts, the deal passed by the Senate -- which was backed by the White House and Republican leadership -- extends unemployment benefit funds to the states for another 13 months.
In the Senate, 43 Democrats, 37 Republicans and U.S. Sen. Joe Lieberman, I-Conn., who caucuses with the Democrats, backed the final legislation. Standing against it were 13 Democrats, five Republicans and U.S. Sen. Bernie Sanders, I-Vt., who caucuses with the Democrats.
Some Democrats have expressed displeasure with the final product for reducing taxes on the highest earning Americans, while some Republicans have warned that it will increase the federal defect.
Middle-class families need a boost in this economy, and that is exactly what this plan gives them, said Senate Majority Leader Harry Reid, D-Nev. It is not perfect, but it will create 2 million jobs, cut taxes for middle-class families and small businesses, and ensure that Americans who are still looking for work will continue to have the safety net they rely on to make ends meet."
Reid could not resist a shot at the Republicans despite the fact that there were more Democrats opposing the legislation.
This debate revealed that my Republican colleagues would rather talk about the deficit than do anything to bring it down, added Reid. They refused to give the middle class a tax cut unless we also handed out tax giveaways to millionaires and CEOs that they do not need, and which our country cannot afford. In the future, I hope my Republican colleagues will match their actions to their rhetoric, and start working with us to bring down the deficit.
On Tuesday, LeMieux said he would back the measure despite some reservations.
Families in Florida and our nation continue to face severe economic challenges, said LeMieux. Voting against the tax relief bill would be a vote to raise taxes when our citizens are suffering and I will not saddle Floridians with the burden of higher taxes. The tax relief bill stops the Jan. 1 tax hike and I intend to vote for it, but this compromise product is not without significant failings. In exchange for avoiding a tax increase, Washingtons politics-as-usual style of brokering has produced a bill that adds billions in deficit spending. Congress first order of business next session should be an across-the-board spending cap. Unless our federal governments spending is reined in, our national debt will threaten the prosperity of our people and the continuation of our Republic.
Mississippi Republican U.S. Sen. Roger Wicker agreed with LeMieuxs logic.
The most important thing Congress can do right now to help American families and small businesses is to prevent tax increases from going into effect on Jan. 1, said Wicker. I hope Congress passes this important legislation so Americans and job creators will have the certainty needed to plan, invest, and grow our economy.
U.S. Sen. Tom Coburn, R-Okla., insisted that the agreement did more harm than good and voted against it.
I understand the argument that this may have been the best tax compromise we could have achieved in the short-term, said Coburn. Yet, this bill does not represent a tough compromise. This bill is an easy compromise that avoids the hard choices facing the country while indulging in parochial spending through the tax code. Our national debt is the greatest threat to our national security, yet Congress refuses to make the hard choices necessary to reduce spending and put us on a sustainable course. Even a perfect tax reform deal would not be enough to dig ourselves out of the hole we are in if Congress is not willing to make hard choices about the size and scope of government.
Congress cant continue to have it both ways, added Coburn. Congress can either make these hard choices ourselves or we can let the international community make these choices for us. Continuing to put these decisions off for another day, as we do with this bill, puts the future of our nation at risk.
The measure now moves to the House which is expected to vote on it on Thursday.
Making a pitch to Florida's Republican congressmen, Obama touted the unemployment-benefits package contained in the tax compromise and called for its final passage.
This tax cut plan, while not perfect ... will offer emergency relief to help tide folks over until they find another job," Obama said.
As for the unemployed, the measure will "strengthen the safety net for 531,029 residents who are at risk of having their unemployment insurance benefits evaporate without congressional action," Obama said in a statement.
Nationally, 2 million Americans will lose their UI coverage if Congress fails to pass the $56 billion extension of benefits.
Republican U.S. Rep. Tom Rooney said he is waiting to see the final details of the bill.
"He strongly supports extending all of the tax cuts, but he is concerned about adding new spending programs without cutting spending somewhere else to pay for them," Rooney spokesman Michael Mahaffey said.
Reach Kevin Derby at kderby@sunshinestatenews.com or at (850) 727-0859. Kenric Ward contributed to the story.
