Senate passes tax plan - Gramm votes NO

John Bush jbush at POST.CIS.SMU.EDU
Fri Jun 20 04:08:29 MDT 1997

Two Republican senators voted against the latest tax plan--so it
passed 18-2.

In it:

o Federal cigarette tax increased 20%
o US flight departure tax increased 33%
o $500 / child tax credit is now in addition to money from the
EIC--previously any EIC funds were to be removed from this additional
tax credit
o inheritance tax threshold will be $1 million in 2007
o tax breaks added for ethanol producers while subsidies are reduced
o proposed medicaid expansion doubled from $8 billion to $16 billion
o up to $500,000 of a gain for a married couple selling a home is tax
o capital gains tax reduced from 28% to 20%

Gramm said, "a late tax increase and spending increase sank the tax
cut in terms of my voting for it."

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