Senate votes aye on biggest tax increase ever
Washington — 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.