Washington (May 12, 2003) -- Members of the Senate Finance Committee voted to pass a modified version of President Bush’s economic stimulation package, a measure that includes roughly $440 billion in tax cuts and state aid.

The vote of 12-9 primarily along party lines, means the measure will go to the full Senate, which is expected to begin consideration this week.

The bill would provide a net $350 billion in tax cuts over 10 years and would exempt the first $500 of dividend income from taxes. An additional 10 percent of dividend income above $500 also would be excluded from taxes. That, ultimately would rise to 20 percent in 2008 and continue through 2012. It also includes $20 billion in aid to cash-strapped states.

More than $80 billion of the tax-cut costs would be offset by revenue-enhancing measures.

-- WebCPA staff

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