US Congress set to pass tax cuts budget

The US Congress was expected today to approve a budget plan that lays the foundation for $1.35 trillion in tax cuts

The US Congress was expected today to approve a budget plan that lays the foundation for $1.35 trillion in tax cuts. It will advance President Bush's agenda of tax relief and limits on government growth.

In an anticipated tight vote the evenly divided Senate was expected to pass a $1.97 trillion fiscal 2002 budget plan that sets up 11 years of tax cuts that fall short of the 1.6 trillion in 10-year cuts Bush sought.

The Republican-led House of Representatives passed the budget yesterday on an almost straight party-line vote.

"If people are good to their word we've got the votes," a White House official said late yesterday after days of negotiations with moderate Democrats to lure swing votes needed to pass the measure in the Senate. The Senate is split 50-50 between the parties.

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The handful of Senate moderates who were open to the Republican budget were not revealing their intentions. But Senate aides said they thought at least three Democrats would join Republicans. This would offset expected defections from Republican Senators Mr James Jeffords of Vermont and Mr Lincoln Chafee of Rhode Island.

That would mark a significant splintering of a centrist coalition of about 15 legislators led by Senator John Breaux, a Louisiana Democrat, which tried to broker a more bipartisan compromise.

Most Democrats have criticised the budget plan, saying it would sacrifice resources needed for schools, healthcare and other priorities to finance tax cuts that would mostly benefit the wealthy.