Senate votes to cut Bush's tax cut in half

SFGate -- The Senate voted Tuesday to slash President Bush's proposed $726 billion tax-cutting package in half, handing the president a defeat on the foundation of his plan to awaken the nation's slumbering economy. [That's what they said about his first huge tax cut.- EL]

The vote to shrink the tax reduction to $350 billion through 2013 was a major coup for Democrats. Joined by a handful of moderate Republicans, they have been trying to shoot down the president's proposed tax cuts or make them smaller, arguing they make no sense with an expensive war with Iraq under way and federal deficits expected to soar to new records.

The Senate's 51-48 vote came the same day Bush formally asked Congress to rush him $74.7 billion to pay for the initial costs of the Iraqi war and other expenses of the U.S. war against terrorism.

In addition, there is growing consensus that a second midyear spending bill is likely this year for reconstruction of Iraq and other post-war costs. That bill could become home to an airline bailout, added domestic spending, or other items that might slow down the current war package.

Bush is alreay past the record for deficit spending in a year and is shooting for $500 billion.