May 10 2001

SENATE PASSES BUSH BUDGET

U.S. Senator Richard C. Shelby (R-AL), today voted in support of the President Bush's budget. The Senate passed the legislation today, voting 53-47 in favor of the legislation that includes a $1.35 trillion, 11-year tax-cut and economic stimulus package. The bill also places a $661 billion ceiling on next year's discretionary spending.

"The budget passed by the Senate represents the largest tax cut in a generation," said Shelby. "The tax cut included in the conference report is a vast improvement over what opponents of the President's tax plan originally supported. Furthermore, the $1.35 trillion tax cut will bring significant and long overdue tax relief to hardworking Americans."

The Senate is expected to begin consideration of the actual tax bill later this month, which will likely contain reductions in marginal rates, marriage penalty relief, death tax elimination, and doubling of the child tax credit.

"It is my hope that the tax bill will also include either a reduction or elimination of the capital gains tax," added Shelby. "I firmly believe that this tax is counterproductive to a vibrant economy."

"In addition to the President's tax cut, the bill protects important programs such as Medicare and Social Security and increases spending for education and defense," said Shelby. "This year's budget plan raises overall spending five percent over last year's levels. I believe that this increase reflects Congress' commitment to fiscal discipline, but at the same time allows for funding of projects and programs important to all Alabamians."