GOP Fails to Extend Tax Cut

From the AP:

The Senate Finance Committee voted 14-6 to endorse a package that would cut taxes by $60 billion over five years but would omit a GOP priority of preserving reduced tax rates for investment income. Sen. Olympia Snowe of Maine, a moderate Republican holding a pivotal vote on the committee, rejected the extension.

"The reality is, this is a very different world than where we were even six months ago," Snowe, said, pointing to budget deficits, rebuilding efforts along the hurricane-ravaged Gulf Coast, ongoing operations in Iraq and rising energy costs.

Other Republicans reluctantly voted for the bill, bemoaning the need to abandon the extension but pledging to reinstate it before the legislation hits President Bush's desk.

"It's in many respects the centerpiece of this legislation," said Sen. Jon Kyl, R-Ariz. "We ought not to be doing the bill without that key element."