WASHINGTON (AP) — The Senate has rejected a Democratic bill providing tax breaks to companies that enlarge their payrolls or make major purchases or plant improvements.
The vote was 53-44, seven short of the 60 votes required to overcome GOP procedural hurdles.
The roll call came after senators voted 73-24 against a Republican version that would have provided a tax deduction to U.S. companies with fewer than 500 employees.
The Democratic measure would give 10 percent tax credits, up to $500,000, for the amount by which a company’s 2012 payroll exceeds last year’s. It would cover new hires or raises for existing workers.
The votes were being held during a campaign season in which neither party wants to give ground in the struggle over how best to spark the economy and for whom to cut taxes.