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Published: Thursday, May 15, 2008
Military spending bill taxes wealthy
The Washington Post
WASHINGTON -- House Democratic leaders on Wednesday embraced a surtax on the wealthy to pay for expanded education benefits for veterans of the wars in Iraq and Afghanistan, clearing the way for votes today on the last war-funding bill of George W. Bush's presidency.
The surtax -- dubbed the "patriots' premium" by House Majority Leader Steny Hoyer, D-Md. -- would raise the tax rate by 0.5 percent on incomes of about $500,000 for individuals and $1 million for couples.
Democratic leaders hope to pass an enhanced G.I. Bill as part of a $184 billion measure to fund the wars in Iraq and Afghanistan into next year and to finance domestic programs that include flood protection around New Orleans and extended unemployment benefits, among other provisions.
By fully paying for the initiative, House Speaker Nancy Pelosi, D-Calif., virtually ensured passage today of three separate measures: one to fund the wars; another to finance domestic needs, such as extended unemployment benefits and expanded education aid for veterans; and a third that will once again seek to set a timeline for troop withdrawals from Iraq.
Sen. Patty Murray, D-Wash., who is shepherding the war funding bill through the Senate, said expanded education assistance is a cost of war. If President Bush does not want to pay for the war through tax increases or spending cuts, he should not protest veterans' benefits, she said.
House Democratic leadership aides acknowledged that the tax will probably be stripped from the package in the Senate, then sent back to the House, where the G.I. Bill either will pass without funding or be whittled down and approved with less controversial offsets.
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