Senate Passes Huge Tax Cut | AccountingWEB

Senate Passes Huge Tax Cut

Late Wednesday, the Senate passed President Bush's $1.35 trillion tax cut, a colossal program that will be phased in over 11 years. The bill now moves to the final stage of negotiation where members of the House and Senate will try to reach a compromise bill that will be sent to the White House.

Leaving party loyalty behind, 12 Democrats voted with 50 Senate Republicans to enact the tax cut.

The bill includes a massive across-the-board reduction of income tax rates, full repeal of the estate tax, relief from the marriage penalty, a doubling of the child tax credit, permanent extension of the corporate research and development tax credit, an increase in contribution limits to IRAs, 401(k)s, and similar retirement plans, education tax breaks, and numerous other provisions that will no doubt confuse taxpayers for years to come.

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