The Senate has defeated a substitute amendment offered by Senator John Thune (R-SD) to the economic stimulus package (S.1/ H.R.1) by a vote of 37 to 60. The vote occurred on a motion to waive a point of order that the amendment violated Budget Act requirements. Sixty affirmative votes were needed in order to waive the point of order, which essentially kills the bill.
This amendment is similar to the House Republican substitute proposal offered during their earlier debate over the package. It would provide “$440 billion in tax relief for middle-class families and small businesses” including “$40 billion in unemployment benefits” according to an official press release.
Per the release, here are the major provisions:
Immediate Tax Relief for Working Families:
This proposal reduces the lowest individual tax rates from 15 percent to 10 percent and from 10 percent to five percent for 2009 and 2010. As a result every taxpaying-family in America will see an immediate increase in their income with an average benefit of $1,250 each year. A married couple filing jointly could save up to $3,400 a year in taxes.
Help for America’s Small Businesses:
Small businesses (those employing less than 500 individuals) employ about half of all Americans and represent 99 percent of all businesses in the U.S., yet they can be subject to tax rates that siphon away one-third or more of their income. Among other small business tax relief provisions, this proposal would allow small business to take a tax deduction equal to 20 percent of their income. This will immediately free up funds for small businesses to retain and hire new employees.
Stabilizing Home Values:
The real-estate market is paralyzed as potential buyers wait on the sidelines for prices to fall even further. In order to encourage responsible buyers to enter the market and stabilize prices, this proposal would eliminate the requirement to repay the current $7,500 homebuyer tax credit for those buyers who can make a minimum down-payment of five percent.
No Tax Increases to Pay for Spending:
Faced with record levels of deficit spending and a growing national debt, this proposal states that tax increases now or in the future should not be used to pay for this new spending.
Assistance for the Unemployed:
Rather than taxing unemployment benefits as income, which only adds to the pain of those individuals already struggling, this proposal would make unemployment benefits tax free so those individuals between jobs can focus on providing for their families. The plan would also extend unemployment benefits from March to December, 2009.
Congress in Your Pocket
