WASHINGTON — The Senate on Tuesday formally buried President Bush's plan to lower the tax on capital gains, but the proposal is expected to be resurrected in Congress next year.
On a procedural motion, a GOP proposal to reduce capital gains taxes and establish a new type of individual retirement account won the support of a bare majority of 51 senators. However, it was killed because it fell well short of the 60 votes necessary to end a filibuster.
The vote was split largely on party lines, with all Republicans who voted supporting the capital gains tax cut, and all but six Democrats backing their leaders.
A cut in the capital gains tax rate passed the House this year and, with substantial Senate support, appeared on the verge of victory as recently as early October. However, Senate Democratic leaders put up a united front, forcing Bush to put off the issue until 1990.