After Initial Democratic Reluctance, $801 Billion Tax Cut Bill Passes Through Congress
December 17, 2010
(ChattahBox U.S. News)—The controversial $801 billion tax cut package moved on to President Obama’s desk for signature last night after being approved by both the House and Senate. The bill will halt a tax increase that would have kicked in after the Bush tax cuts expire on Dec. 31, the New York Times reports. The bill also includes $57 billion in extended unemployment insurance.
The short-term tax cut solution will help Americans who are facing today’s tough economy now, but could create problems down the road for the U.S. deficit, which is already high, lawmakers acknowledged. To that end, several of those in Congress have pledged to work toward focusing on reforming the tax code, as well as reducing debt and the deficit, during 2011, the Times notes.
Meanwhile, Senate Democrats abandoned efforts last night to pass a $1.2 trillion spending bill that would finance the federal government through next September, after Republicans pledged to stop the bill, even though it included millions for projects they had suggested, the Times reports.