House Passes Permanent Tax Cut Bill

The House on April 18 approved a measure that would make permanent the tax-cut provisions contained in the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) (P.L. 107-16) by a vote of 229 to 198. The bill's fate in the Senate is uncertain, since Senate Majority Leader Thomas A. Daschle, D-S.D. refuses to bring it up for a vote.

The legislation, which will cost $372 billion during the next 10 years, was substituted as an amendment to the Fairness for Foster Care Families Bill of 2001 (HR 586) to speed its passage. The new bill would also enact the Taxpayer Protection and IRS Accountability Bill of 2002 (HR 3991) without its controversial Code Sec. 527 provision. The House rejected HR 3991 on April 10.

The tax cut was good for America in 2001 and it is good policy now, according to House Speaker J. Dennis Hastert, R-Ill. It will help estate planners and extend the same marriage penalty relief to future nuptials, he stated. It will also prevent taxes from suddenly rising on taxpayers when EGTRRA expires in 2011, Hastert added. Treasury Secretary Paul H. O'Neill issued a statement on April 18 in support of the passage of HR 586, saying, "I applaud the House for voting to prevent the largest tax increase in history in 2011."

However, the bill's future is uncertain, at best, in the Senate, where Daschle has vowed that he will not permit a vote on the measure. If so, "the American people will hold the Senate leadership responsible for what I consider very irresponsible behavior," House Ways and Means Committee Chairman William M. Thomas, R-Calif., noted in response.


News provided by CCH

You may like these other stories...

Tesco accounting probe finds “inappropriate behavior” by staff – reportsClare Hutchison of Reuters wrote on Sunday that an investigation into a 250 million-pound ($402 million) profit overstatement at...
Did you ever feel as if you're preparing taxes in the Twilight Zone? You may be more right than you think. Each year, professional preparers all over the country have to work in a shadowy reflection of the normal tax...
The split over convergenceDavid M. Katz of CFO wrote an interesting article on Thursday about the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) backing away from their...

Already a member? log in here.

Upcoming CPE Webinars

Oct 21Kristen Rampe will share how to speak and write more effectively by understanding your own and your audience’s communication style.
Oct 22This webinar will include discussions of important issues in AU-C 800, Audits of Financial Statements Prepared in Accordance with Special Purpose Frameworks.
Oct 23Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.
Oct 30Many Excel users have a love-hate relationship with workbook links.