WASHINGTON, April 11: The US House of Representatives early Friday narrowly approved a 2.2-trillion-dollar budget blueprint, but drastically scaled back President George W. Bush’s tax cut proposal in the face of ballooning budget deficits.
The 216-211 vote, cast by exhausted lawmakers in the predawn hours largely along party lines, was made possible by an unusual compromise reached by House and Senate negotiators that postpones a decision on the final size of the tax cut, most likely until the summer.
With the most controversial issue kicked down the road, the House included in the blueprint, known as a budget resolution, a pledge not to seek a tax cut larger than $550 billion, down from $726 billion requested by Bush in January, in hopes of giving the flagging US economy a shot in the arm.
The paring down of the plan resulted from an effort by House Republican leaders to put down a quiet revolt among fiscal conservatives demanding a return to budget discipline amid runaway wartime spending, according to congressional officials.
But a final solution to the tax dispute was likely to be even more difficult.
The Senate has already voted to slash Bush’s tax package to $350 billion, and intensive lobbying by Treasury Secretary John Snow has failed so far to sway moderates on both sides of the aisle.
Moreover, under Senate rules, any tax cut exceeding $350 billion would require a filibuster-proof majority of 60 votes, which Republicans admit they have little chance of mustering.
“We are not going to support anything more than $350 billion,” warned Republican Senator George Voinovich, a well-known deficit hawk.—AFP
