This penalty will be gradually phased out. The top income tax rate will be reduced from 39.6 percent to 35 percent and a new bottom 10 percent bracket created. And the inheritance tax and the so-called marriage penalty will be gradually eliminated over the next decade. Dems A total of 28 Democratic representatives and 12 Democratic senators voted to approve the tax cut last month. But most congressional Democrats say the plan relies on overly optimistic projections of federal budget surpluses and will ultimately leave many key domestic spending priorities badly underfunded.
Critics also say the plan is a boondoggle for the wealthy.
Democratic opponents of the legislation also say it is riddled with gimmicks, noting that many of the bill's provisions will not be fully phased in until the end of 2009 and that all of the provisions are set to expire the following year. It's not fiscally responsible. It's not fair. The president is set to dine at the White House this evening with Senate Majority Leader Tom Daschle of South Dakota. Daschle voted against the tax plan and suggested Wednesday that the newly Democratic-led Senate would revisit the legislation.