House and Senate Republicans are putting the finishing touches on their tax cut plan valued at $792 billion over the next ten years. This is a far cry from the Democrat's desired $250-300 billion cut, and almost guarantees a veto from the President. The bill would trim all five income tax rates by one percentage point, lower capital gains taxes for individuals, provide special tax breaks to businesses, and ease the so-called marriage-tax penalty, which forces millions of couples to pay higher taxes than if they were single.
Politics will again get in the way as both sides are jockeying for position in next year's elections. Don't expect a final bill to be presented for ratification until summer recess is over and Congress comes back to work after the Labor Day holiday . . .