Senate Passes Tax Break Package
The Senate voted 93-2 to pass a bill which will provide tax breaks to individuals and businesses totaling more than $100 billion. Tax breaks will be provided for renewable energy, while also holding back the alternative minimum tax from reaching millions of taxpayers this year. Additionally, it also extends several business tax provisions that were set to expire.
Harry Reid (D., Nev.), Senate Majority Leader, asked the House not to make any changes to the version of the legislation set forth in the Senate. Reid said, “Don’t send us back something else. We can’t get it passed.” He added, “If they try to mess with our package, it will come back here, it will die, and we…will have snatched defeat from the jaws of victory.”
On the other side of things, Steny Hoyer (D., Md.), House Majority Leader, said the House would vote on the tax bill but one “that does not add to the national debt.”
With all of this in mind, the AMT provision is one area on which both sides agree. If Congress does not step in approximately 26 million people will owe additional money in taxes. This is a huge increase when compared to the four million from last year.
For businesses, the bill will extend the research and development tax credit. Additionally, a provision geared towards multinational financial-services firms would allow foreign branches to defer paying United States taxes.
It will be interesting to see if the tax break package moves forward in this capacity, or if major changes are made.
