Share this story
Close X
Switch to Desktop Site

Senate votes aye on biggest tax increase ever

The Senate took the first step toward lowering next year's federal deficit by approving the biggest tax increase bill in history Friday - a three-year, $99 billion package endorsed by President Reagan. The next move is up to the House.

The final 50-47 vote came at about 5 a.m. EDT. The package would require automatic withholding of a portion of dividend and interest income for tax purposes, stiffen taxpayer compliance rules and penalties, take a bigger tax bite from wealthy individuals, raise airline ticket and telephone service taxes, and close an array of business loopholes. It also calls for more than $17 billion in spending cuts in such programs as medicare, welfare, and unemployment compensation.

About these ads