May 16th, 2001. The President's tax plan passes in the House:
On May 16th, 2001 the President's tax plan titled the Economic Growth and Tax Relief Reconciliation Act of 2001. This plan reduced income tax rates, made exclusions in estate and gift taxes, and simplified retirement and qualified plans such as 401 K, 403 B, individual retirement accounts, and pension plans. The reductions in income taxes were to come into full effect by 2006. This plan passed the House of Representatives by a vote of 230 supporting to 197, with 5 people not voting. 13 Democrats voted with the Republicans for this tax plan.
May 23rd, 2001. The President's tax plan passes the Senate through a Tie Breaking Vote:
Just one week after the House passed the President's tax plan, the Senate held a vote and the plan, and it came to a 50/50 vote. Three Senate Republicans, Senators McCain, Chafee, and Jeffords, voted with Senate Democrats in opposing the plan, while one Democrat, Zell Miller of Georgia, voted with the Republicans in support of the plan. Because the Senate was split on the decision, Vice President John Kasich casted the deciding vote, and the plan passed the Senate.
June 5th, 2001. Two Senators switch Parties:
On June 5th, 2001, in a joint Press Conference, Republican Senators Jim Jeffords of Vermont, and Lincoln Chafee of Rhode Island, announced that they were leaving the Republican party to become independents. Both of them expressed that they were growing frustrated with the direction their party was going in and said that the leadership of their party was growing frustrated with them and they were getting frustrated with the Republican leadership. Both said they intended to caucus with the Democratic party, giving the Democrats a 53 seat majority.
Hours later, in an interview on FOX News, Vice President Kasich said that Jeffords and Chafee were both doing a great disservice to their constituents who elected them as Republicans.
June 7th, 2001. President Bush signs his Tax Plan into law:
On June 7th, 2001, President Bush signed the Economic Growth and Tax Relief Reconciliation Act of 2001, making it law. After this, the President would go on vacation.