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Tuesday, November 08, 2005
Finance Comm. Mark: Tax Relief Act of 2005
Today the Finance Committee released the Description of the Chairman's Mark of the "Tax Relief Act of 2005," which is scheduled for markup November 10. The proposal outlines nearly $7 billion in tax benefits for businesses and individuals in areas affected by Hurricanes Katrina, Rita, and Wilma.
The $7 billion in tax cuts is part of the larger, $69 billion reconciliation tax package that Chairman Grassley is hoping will be passed in the next two weeks. The reconciliation tax bill also:
Extends the 15 percent rate on capital gains and dividends for one year, at a cost of $12 billion. The cap gains and dividends extension primarily benefits the top four percent of all income earners in the country;
Extends Alternative Minimum Tax (AMT) protection for one more year, at a cost of $27 billion;
Extends the deduction for state and local taxes for one year, at a cost of $2 billion.
The entire tax package is approximately $8.6 billion above the $60.2 billion limit on the amount of tax cuts protected from filibuster under budget reconciliation rules. According to CongressDaily, however, Grassley reiterated today at the U.S. Chamber of Commerce that he believes the Senate would defeat a point of order against the reconciliation bill as long as its cost is not more than $60 billion above the amount of hurricane relief.
Posted by Becky Lewis
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